HIGHLIGHTS

• MARKET TREND—Mixed: CZ: down $.0125; SX: down $.0525; WZ: up $.0025; KWZ: up $.0025. 

·       MACRO:  Nikkei posts its 10^th consecutive higher close; China’s 1.6% Sep CPI increase in line with expectations.  Yellen indicates U.S. inflation likely to “improve”. ASIA—Mostly higher:  Nikkei, +0.47%; Shanghai, -0.35%; Hang Seng, +0.76%.  EUROPE: Higher: DAX, +0.19%; FTSE, +0.11%;CAC, +0.14%.   WALL STREET—Futures are higher—DOW,+19; S&P, +1.25; NAS, +9.00.  EXTERNALS:  $ Index: +.150 @ 93.085; Gold: +$2.30 @ $1,303; Dec crude:+$0.65 @ $52.38/bl.  Del’y: SBM, 62; SBO, 4

• Weather: Mostly dry conditions are forecast for the western U.S. Corn Belt today through Wednesday, with temperatures averaging below to near normal today and then warmer on Tuesday and Wednesday.  In the Eastern Corn Belt, mostly dry conditions are forecast for today through Wednesday.  Temperatures average below to near normal today, and then turn warmer on Tuesday and Wednesday
• CZ, down $.0125 @ $3.5150; CH, down $.0125 @ $3.6525.  Heavy fund buying on Friday with a total of 10 K estimated    
• SX, down $.0525 @ $9.95; SF, down $.0525 @ $10.05.  Funds:  Bot 8 SB; 4 SBM & 5 SBO.  Board Crush: $.93,+1; LY: $.77
• WZ, up $.0025 @ $4.3975; WH, up $.0050 @ $4.5850. The funds bought 6 K to close out the week     

 

 

CORN/SORGHUM

·       ATI Research: U.S. corn mature on average increases approximately 6% over Oct. 8-15 to approximately 94%, while corn harvest on average increases approximately 10% over Oct. 8-15 to approximately 47%

·       Consultant: Planting of full-season corn is currently taking place in Brazil.  With domestic corn prices in Brazil below the cost of production, however, farmers are switching some full-season corn to soybean production

·       Export Inspections released at 10 am CDT; Corn, 36.4 mbu needed; 20.6 last week.  Milo—4.2 needed; 4.6 last week

·       Through Oct. 13, the 2017 crop insurance harvest price for December 2017 corn futures has averaged $3.4953

SOYBEANS/WHEAT

·       ATI Research: U.S. soybean harvest on average increases approximately 17% over Oct. 8-15 to approximately 60%

·       Consultant: Soybean planting has begun in Argentina.  Farmers want to plant more corn and fewer soybeans due to better returns for corn, but spring weather has been wet.  If weather dries, a reduction in soybean acreage is likely

·       Export Inspections released at 10 am CDT; Soybeans, 43.6 mbu needed; 54.6 last week

·       Through Oct. 13, the 2017 crop insurance harvest price for November 2017 soybean futures has averaged $9.7015

·       Export Inspections released at 10 am CDT; Wheat, 17.5 mbu needed; 12.9 last week

·       ATI Research: 5-year avg. for U.S. winter wheat planting progress increases approx. 13% from Oct. 8-15 to 71%

ENERGY

·       Higher:  CLZ17, +0.65 @ $52.38; EBZ, +$0.80 @ $57.97;EBZ-QCLZ, +$0.17; RBZ, +.0123; NGZ, -.038;​ HOZ, +.0196

·       Cash ethanol markets were mixed on Friday: Chicago steady; New York off 1 1/8; Gulf steady; Tampa down ¾; Dallas eased 1; but LA was 1 ½ higher at $1.56 per gallon

·       Ethanol RINs posted modest gains on Friday: 2016’s and 2017’s firmed 7/8 to 76-77

·       The Nov RBOB/Nov ethanol spread reversed course on Friday, gaining $.0340 to +$.19120/gallon   

  LIVESTOCK/POULTRY        &​nbsp;                       &n​bsp;    

• Choice boxed beef values firmed 78-cents on Friday to $198.22, and are up $1.00 compared to last week
• Dressed steer weight for week end Sep. 30: 894 lbs, dn 3 lbs v. last week, 895 for 4-week avg. and 909 last year

·       USDA mandatory pork carcass cutout value firmed 63-centson Fri. to $73.88, and is $1.96 higher vs. a week ago

·       CME Lean Hog Index added $0.39 on Fri. to $59.51.  October futures eased $0.30 but are still $0.89 above the index 

Sources: Bloomberg, Dow Jones, AP, DTN