HIGHLIGHTS

• MARKET TREND—Higher:  CU, +$.03; SU, +$.0325; WU, +$.0775; KWU, +$.0375
• MACRO:  Trade war concerns return to the front burner; WH says EU proposal on auto tariffs, “not good enough”.  Asia—Weaker: Nikkei, -0.02%; Shanghai, -0.46%;Hang Seng, -0.98%.  EUROPE:  Lower:  DAX, -1.06%; FTSE, -0.51%; CAC, -1.348%. WALL STREET: Futures are also lower: DOW, -55; S&P, -5.50; NAS, -11.25. EXTERNALS: Oct crude: -$0.52 @ $69.73; Dec Gold: +$7.50 @ $1,212; Dec $ Index,+0.001 @ 94.265.  DELY: SBM, 161; SBO, 1,313; C, 137; SB, 511; HRW, 376

·        T-storm Weather: Numerous & significant thunderstorm episodes are forthcoming to the central U.S. over the next 10 to 14 days as energy flows around a large upper-level high in the eastern U.S.  Widespread coverage of near- and above-normal rainfall results as thunderstorms affect varying areas each day (beginning today in the western Corn Belt); highest totals across the northwest half to two-thirds of the Corn Belt where pockets of field flooding develop with time.

·       CU, up $.03 @ $3.44; CZ, up $.0175 @ $3.5825.  The funds were again even inThursday’s session          

• SU, up $.0325 @ $8.2275; SX, up $.0275 @ $8.3425.  Funds: sold 2 SB, 2 SBM, bot 2 SBO.  Board Crush: $1.55, +5, LY: $.93
• WU, up $.0775 @ $5.1575; WZ, up $.0750 @ $5.4250.  Funds sold 6 K yesterday         

CORN/SORGHUM

·       September 2018 corn futures on Thursday closed at $3.41—the lowest settlement price for the contract since July 11

• T-storm Weather: At some point, the warm/wet trend for Corn Belt will break down, though it is unclear when.  Most likely, it will occur as coolness inevitably expands across the Arctic in response to diminishing sunlight toward mid-Sep

·       ATI Research: Combined unshipped export sales of U.S. old-crop and new-crop corn as of Aug. 23 stood at 590 mbu, which is up 66% from 356 mbu at this time a year ago

·       Consultant: Argentina corn harvest is 97% complete with the production estimate unchanged at 31.0 MMT

SOYBEANS/WHEAT

• T-storm Weather: A total of 30% of U.S. soybean production received at least 4.00” of rain over the last 14 days (incl. 8% with at least 6.00”).  If significant rains continue, the risk of flooding exists in much of IA, WI, IL, IN and MO
• ATI Research: Combined unshipped export sales of U.S. old-crop and new-crop soybeans as of Aug. 23 stood at 610 mbu, which is up 11% from 549 mbu this time a year ago

·       T-storm Weather: Total of 91% of wheat in eastern Australia; i.e. all wheat outside Western Australia, is experiencing agricultural drought from below-normal rain the last 90 days (including 78% that received less than half of normal)

• ATI Research: Unshipped export sales of U.S. all wheat as of Aug. 23 were 158 mbu, which is 12% lower from last year

ENERGY

·       Lower: CLV18, -$0.52 @ $69.73; EBV, -$0.76 @ $77.01; EBV-QCLV, +$0.24; RBV, -0.0128; NGV, +.032; HOV, -.0138

·       On Thursday, cash ethanol markets were notably lower: Chicago was quoted at $1.24125, down $0.03375; Basis to Chicago—New York, +$0.0875; Gulf, +$0.08875; Dallas, +$0.02375; Tampa, +$0.15875; and LA, +$0.17875

·       Ethanol RINs were firmer on Thursday: 2017’s increased ¼ to 14 ½-15 ½; and 2018’s gained ¼ to 20 ½-21

·       The September RBOB/September ethanol spread expanded again, out $.0636Thursday to $.9115/gallon  

 LIVESTOCK/POULTRY                          &n​bsp;           

• Choice boxed beef values eased 95-cents on Thursday to $211.73 and are down $2.64 compared to last week 
• Dressed steer weight for week end Aug. 18: 886 lbs, up 5 lbs v. last week, 876.75 for 4-week avg. and 884 last year
• USDA mandatory pork carcass cutout value firmed $2.21 on Thursday to $65.69 and is $1.49 higher vs. a week ago 
• CME Lean Hog Index was $0.60 lower on Thu. at $45.85.  October futures fell $2.425 but are $3.275 above the index 

Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather