HIGHLIGHTS

• MARKET TREND—Mixed:  CZ, steady; SX, up $.02; WZU, -$.02; KWZ, -$.0225
• MACRO:  Asian markets continue weak as global trade worries linger. ASIA: Lower:Nikkei, -0.41%; Shanghai, -0.47%; Hang Seng, -0.99%.  EUROPE:  Firm:  DAX,+0.16%; FTSE, +0.03%; CAC, +0.26%.  WALL STREET: Futures are higher: DOW, +46;S&P, +2.50; NAS, +7.25.  EXTERNALS: Oct crude: +$0.12 @ $68.84; Dec Gold: +$9.60 @ $1,211; Dec $ Index, -0.009 @ 94.720.  DELY: SBM, 0; SBO, 594; C, 178; RR, 9; ETOH, 0; O, 0; SB, 365; HRW, 9; SRW, 307

·       T-storm Weather: A cool front, waves of energy, and the remnant circulation of Tropical Storm Gordon converge on the Corn Belt over the next few days, producing heavy rainfall of 1.50" to 3.50" across the southeast half to two-thirds of the central U.S., generally just south of the area that received more than 10.00" over the last 30 days.  Drying is underway to the northwest, and a sharply drier period follows from west to east later this week and weekend in all areas

·      CZ, steady @ $3.6525; CH, down $.0050 @ $3.7675.  The funds sold 6 K on Wednesday          

• SX, up $.02 @ $8.40; SF, up $.0225 @ $8.53.  Funds: Sold 4 SB, 3 SBM, 3 SBO.  Board Crush: $1.49, -1, LY: $.89WZ, down $.02 @ $5.195; WH, dn $.02 @ $5.4050.  The funds were again sellers, at an estimated 6 K yesterday      

  CORN/SORGHUM

• T-storm Weather: Following heavy rain this weekend across the southeast half to two-thirds of the central U.S., dry and mild weather follow next week and improve conditions for corn harvesting across a wide area

·      Early private estimates of the U.S. corn yield in USDA’s Sep. 12 Crop Production report are slightly lower than August

• ATI Research: The U.S. corn export model slipped 1.8 mbu bushel per week to 37.2 million with a 33.1-41.3 mbu range; our estimate holds in a 40-50 mbu range with a bias centered around the midpoint

·      Ethanol margins: $0.23 per gallon—down vs. $0.27 last week & well below $0.43 in 2017.  EIA report at 10:00 am CDT

SOYBEANS/WHEAT

·      Early private estimates of the U.S. soybean yield in USDA’s Sep. 12 Crop Productionreport are higher than August

• ATI Research: Our bias on near-term U.S. soybean exports is 25-30 mbu per week

·      T-storm Weather: In the U.S., rapid drying begins across wide area Sep. 7-9 on; likely accelerates soybean maturation

·      ATI Research: History suggests potential for decrease in Australia wheat crop in Sep. 12 USDA supply/demand report

·      T-storm Weather: Severe drought intensifies for eastern Australia wheat next 7-10 days, despite some rain Thu.-Fri.

ENERGY

·      Firm: CLV18, +$0.12 @ $68.85; EBX, +$0.36 @ $77.63; EBX-QCLX, +$0.24; RBV, +0.0135; NGV, -.009; HOV, +.0078

·      EIA Report Estimates (API): crude oil, -2.1 (-1.2); Gasoline, -1.2 (+1.0); Distillates, +0.3 (+1.8).  Estimates for ethanol prod. avg. 1.074 mbpd (range: 1.067-1.080).  Avg. est. of ethanol stocks: 23.016 mb (range 22.561-23.300)

·      On Wednesday, cash ethanol markets were weaker: Chicago was quoted at $1.2975, down $0.02625; Basis to Chicago—New York, +$0.085; Gulf, +$0.0925; Dallas, +$0.0275; Tampa, +$0.1525; and LA, +$0.2125

·      Ethanol RINs were firmer on Wednesday: 2017’s up ¼ at 15-15 ¼; and 2018’s increased ¼ to 21-21 ¼

·      The October RBOB/September ethanol spread eased $.0174 yesterday, to $.6738 per gallon 

 LIVESTOCK/POULTRY             &​nbsp;                        &​nbsp;

• Choice boxed beef values eased 42-cents on Wednesday to $210.40 and are $2.28 lower vs. a week ago  
• Week-to-week declines have been noted for choice boxed beef for seven consecutive trading days
• USDA mandatory pork carcass cutout value fell $1.02 on Wed. to $66.43 but is still up $2.95 compared to last week 
• CME Lean Hog Index firmed $0.23 on Wed. to $45.67.  October futures gained $0.90 and are $6.305 above the index 

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