HIGHLIGHTS

• MARKET TREND—Flat to firmer CZ: up $.0025; SX: up $.01505; WZ: steady; KWZ: up $.0075 

·       MACRO:  Abe wins relection in Japan; Europe higher on earnings while monitoring political developments in Catalonia. ASIA—Mostly higher:  Nikkei, +1.11%; Shanghai,+0.11%; Hang Seng, -0.64%.  EUROPE: Higher: DAX, +0.57%; FTSE, +0.11%; CAC, +0.66%.   WALL STREET—Futures suggest a higher opening—DOW, +24; S&P, +2.25; NAS,+9.50.  EXTERNALS:  $ Index: +.281 @ 93.860; Gold: -$2.70@ $1,275; Dec crude:+$0.04 @ $51.88/bl. 

• Weather: Dry conditions or just a few light showers forecast today for the Western U.S. Corn Belt.  Dry weather is forecast for Tuesday-Wednesday.  Temperatures projected to be above normal today and  near to below normal on Tuesday.  In the Eastern Corn Belt, scattered showers are forecast today; some moderate to heavy totals expected.  Light rain is forecast for Tuesday-Wednesday.  Temperatures projected to be above normal through today and near to below normal Tuesday-Wednesday
• CZ, up $.0025 @ $3.4475; CH, up $.0025 @ $3.5875.  Heavy fund liquidation on Friday, 10 K     
• SX, up $.0150 @ $9.8025; SF, up $.0175 @ $9.91.  Funds:  Sold 5 K SB & 5 K SBM, bot 4 SBO.  Board Crush: $.95, +2; LY: $.78
• WZ, steady @ $4.26; WH, steady @ $4.4450.  The funds sold 5 K to close out the week

CORN/SORGHUM

·       December 2017 corn futures on Friday closed at $3.44 ½--the lowest settlement price for the life of contract

·       ATI Research:  The 5-year avg. increase in harvest from Oct. 15-22 is 12%; largest gain since 2009 was 17% in 2011

·       Consultant: Brazilian farmers not enthusiastic at all about safrinha (double crop) corn production due to low corn prices.  Some may plant small grains instead ofsafrinha corn or even cover crops 

·       Export Inspections released at 10 am CDT; Corn, 36.9 mbu needed; 12.7 last week.  Milo—4.2 needed; 0.1 last week

·       Through Oct. 20, the 2017 crop insurance harvest price for December 2017 corn futures has averaged $3.4918

SOYBEANS/WHEAT

·       ATI Research: Very active U.S. soybean harvest was seen ast week.  The largest one-week increase in U.S. soybean harvest was 30% seen over Oct. 3-10 in 2010.  Today’s USDACrop Progress report could show ~75% vs. 49% last week

·       Consultant: The start of Argentina’s soybean growing season is characterized as average and slowly improving

·       Export Inspections released at 10 am CDT; Soybeans, 43.1 mbu needed; 65.0 last week

·       Through Oct. 20, the 2017 crop insurance harvest price for November 2017 soybean futures has averaged $9.7512

·       Export Inspections released at 10 am CDT; Wheat, 17.7 mbu needed; 11.9 last week

·       ATI Research: USDA Crop Progress report could show U.S. winter wheat planting at 70-72% vs. vs. 60% last week

ENERGY

·       Mostly Firm:  CLZ17, +$.04 @ $51.88; EBZ, -$0.16 @ $57.59; EBZ-QCLZ, -$0.20; RBZ, +.0004; NGZ, +.024;&​nbsp;HOZ, +.0013

·       Cash ethanol markets were generally mixed on Friday: Chicago down 1 3/8; New York off ¾; Gulf fell 1 ¼; Tampa up ½; Dallas steady; and LA was ½ lower at $1.53 per gallon

·       Ethanol RINs posted solid gains on Friday: 2016’s and 2017’s were 5 ¼ higher at 84-91

·       The Nov RBOB/Nov ethanol spread expanded further on Friday, up $.0394 to +$.29210/gallon 

  LIVESTOCK/POULTRY                             &nbs​p;       

• Choice boxed beef values were 29-cents higher Fri. at $199.86, are up $1.64 v. a week ago & the highest since Aug. 10
• Cattle on Feed: Oct. 1 on feed, 105.4% (104.6% avg est); Sep. place, 113.5% (107.3%); Sep. Market, 102.9% (102.7%)

·       USDA mandatory pork carcass cutout value gained $1.38 on Fri. to $75.05, and is $1.17 higher compared to last week

·       CME Lean Hog Index firmed 87-cents on Fri. to $64.21.  December futures were up $0.60 & are $0.64 above the index 

Sources: Bloomberg, Dow Jones, AP, DTN