HIGHLIGHTS

• MARKET TREND—Higher:  CU, +$.0325; SU, +$.18; WU, +$.0650; KWU, +$.0650.  China/U.S. to resume trade talks
• MACRO:  Markets react favorably to China’s acceptance of U.S. offer to resume trade negotiations.   Asia—Lower but trims losses: Nikkei, -0.05%; Shanghai, -0.63%; Hang Seng, -0.82%.  EUROPE:  Higher:  DAX, +0.31%; FTSE, +0.59%; CAC, +0.49%.  WALL STREET: Futures bounce on trade: DOW, +151; S&P, +13.25; NAS,+49.00.  EXTERNALS: Sep crude: -$0.02 @ $64.99; Aug Gold: +$1.90 @ $1,179; Dec $ Index, -0.092 @ 96.085

·        T-storm Weather: Several systems converge on the central U.S. over the next week.  The first two systems produce areas of rain within the southeast two-thirds of the Corn Belt and Delta through Friday, as well as along the NE-SD border.  A larger and stronger system passes over Sun.-Tue. and produces additional rainfall across a wider area with 0.50" to 1.00" most likely, depending on exactly how an axis of surface-level high pressure near the Great Lakes behaves

·       CU, up $.0325 @ $3.6475; CZ, up $.0325 @ $3.7925.  The funds were sellers of 4 K at mid-week     

• SU, up $.18 @ $8.7550; SX, up $.1725 @ $8.8625.  Funds: Sold 6 SB, 5 SBM, 6 SBO.  Board Crush: $1.74, -$.08, LY: $.88
• WU, up $.0650 @ $5.3875; WZ, up $.0625 @ $5.56.  The funds sold 8 K on Wednesday    

CORN/SORGHUM

·       Export Sales to be released at 7:30 am CDT.  Trade expects 12-24 mbu for 17/18 corn and 12-39 mbu for 18/19

• T-storm Weather: Following widespread rainfall across the Corn Belt through early next week, a drier and sharply cooler period develops from northwest to southeast Mon.-Tue.
• ATI Research: Rapid development of 2018 U.S. corn crop is illustrated in dented stage.  The 5-year avg. for U.S. corn dented increases approx. 13% from Aug. 12-19 to 26%; but corn dented for 2018 as of Aug. 12 was already at 26%
• Ethanol grind: Total of 1,072,000 barrels/day for week end Aug. 10—dn 28 thou v. prior week but up 1.2% v. last year

SOYBEANS/WHEAT

·       Export Sales report.  Trade expects 4-15 mbu for 17/18 soybeans and 11-26 for 18/19; soymeal, 40-200 K MT for 17/18 and 25-100 for 18/19; soyoil, 5-24 K MT for 17/18 and 0-8 for 18/19 

• T-storm Weather: A seasonably-warmer period likely assembles from Aug. 24-25 forward for most U.S. soybeans, helping some additional thunderstorms to close out the last five to six days of the month.

·       Export Sales report.  Trade expects 7-18 mbu for 18/19 all wheat

• T-storm Weather: In Australia, drought worsens over the next 7 to 10 days for winter wheat in Queensland and New South Wales (~30% of total production); little to no rain elsewhere, but seasonable to cool across all areas

ENERGY

·       Mixed: CLU18, -$0.02 @ $64.99; EBV, +$0.15 @ $70.91; EBV-QCLV, +$0.15; RBU, -0.0125; NGU, -.010; HOU, +.0003

·       On Wednesday, cash ethanol markets were weaker: Chicago was quoted at $1.3625, down $0.00625; Basis to Chicago—New York, +$0.0875; Gulf, +$0.0875; Dallas, +$0.0375; Tampa, +$0.1725; and LA, +$0.2675

·       Ethanol RINs edged higher on Wednesday: 2017’s firmed 1/8 to 16-17; and 2018’s gained ½ to 20-20 ¾

·       The September RBOB/September ethanol spread tugged in $.0247 yesterday, to$.64040/gallon 

 LIVESTOCK/POULTRY                      ​;                

• Choice boxed beef values firmed 31-cents on Wednesday to $209.95, and are up $4.22 compared to a week ago
• Since Aug. 1, choice boxed beef values have increased $6.20 (3.0%) and are at their highest level since July 3
• USDA mandatory pork carcass cutout value declined $1.40 on Wed. to $67.67, and is $2.12 vs. last week 
• CME Lean Hog Index fell $1.58 on Wed. to $55.23.  October futures gained $0.625, but are $2.755 below the index

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