HIGHLIGHTS

• MARKET TREND—Mixed:  CZ: up $.0050; SX: up $.03; WZ: down $.0150; KWZ: down $.02 

·       MACRO:  Welcome to November, mostly positive earnings propelling equities higher.  ASIA—Definitely firmer:  Nikkei, +1.86%; Shanghai, +0.08%; Hang Seng, +1.23%. EUROPE: Higher as well: DAX, +1.56%; FTSE, +0.21%; CAC, +0.46%.   WALL STREET—Look for a strong start—DOW, +123; S&P, +10.50; NAS, +33.  EXTERNALS:  $ Index: +.106 @ 94.535; Gold: +$5.20 @ $1,272; Dec crude: +$0.63 @ $55.01/bl.  Deliveries: RR: 433; SB, 47

• T-storm Weather: In the U.S., cold & warm air continually battle for position, triggering rain from time to time within the Delta & southeast Corn Belt, & a mix of light rain & snow in northern areas. That said, heavy totals are not expected, & key cattle & HRW wheat areas of & adjacent the central & southern Plains will be bypassed by most weather systems, maintaining dry weather.  In South America, multiple heavy thunderstorms break drying in northern areas over the next 10 days as 2.75"-5.25" of rain unfolds
• CZ, up $.0050 @ $3.4625; CH, up $.0050 @ $3.60.  The funds sold 8 K on Tuesday       
• SX, up $.03 @ $9.7675; SF, up $.0175 @ $9.8650.  Funds:  even SB, SBM & SBO yesterday.  Board Crush: $.94, -2; LY: $.71
• WZ, down $.0150 @ $4.170; WH, down $.0150 @ $4.3450.  The funds were again sellers, 5 K yesterday   

CORN/SORGHUM

·       The final 2017 crop insurance harvest price for December 2017 corn futures is $3.4939

• T-storm Weather: Rain occurs within the Delta and southeast Corn Belt over the next 10 days from time to time, ultimately producing 0.50”-1.00” totals.  Well-organized precip is not expected for northern and northeastern areas
• ATI Research: Bias on near-term U.S. corn exports remains in the low to mid-20 mbu per week range

·       Consultant: With planting delays in Brazil’s main full-season corn producing states, farmers may switch to soybeans

·       Ethanol margins: $0.22 per gallon—up from $0.21 last week but well below $0.57 in 2016.  EIA report at 9:30 am CDT

SOYBEANS/WHEAT

• The final 2017 crop insurance harvest price for November 2017 soybean futures is $9.7507

·       Consultant:  The Brazilian soybean crop is approximately 31% planted vs. 40% last year and the 34.5% average.  Planting continues to be slow due to previously dry conditions in central Brazil and wet conditions in southern Brazil

• ATI Research: Bias on near-term U.S. soybean exports is 85-90 mbu per week 

·       Contract lows were recorded Tuesday in Chicago December wheat futures and Kansas City December wheat futures

·       T-storm Weather: Best overall conditions for U.S. winter wheat planting are currently in Delta, southern/central Plains

ENERGY

·       Firmer:  CLZ17, +$.63 @ $55.01; EBF,+0.64 @ $61.58; EBF-QCLZ, +$0.02; RBZ, +.0267;NGZ, +.013; HOZ, +.0190

·       EIA Report Estimates (API): crude oil, -1.2 (-5.1); Gasoline, -1.8 (-7.7); Distillates, -2.3 (-3.1)

·       A mixed trend was noted in cash ethanol markets on Tuesday: Chicago is quoted at $1.42, up $0.0075; Basis to Chicago—New York, +8; Gulf, +6 ¼; Dallas, -1; Tampa, +13 ½; and LA, +11 ½

·       Ethanol RINs posted slight gains on Tuesday: 2016’s and 2017’s increased 1/8 to 94 ½-96 ¼

·       The Dec RBOB/Nov ethanol spread gained $.0105 yesterday, settling at+$.34960/gallon 

  LIVESTOCK/POULTRY                        ​             

• Choice boxed beef values soared $3.42 Tue. to $206.44—largest 1-day rise since May 1—& are up $6.31 v. last week
• Contract highs were recorded on Tuesday for December live cattle futures as well as all 2018 live cattle contracts

·       USDA mandatory pork carcass cutout value firmed 15-cents on Tuesday to $77.96, and is up $2.47 vs. a week ago

• CME Lean Hog Index eased $0.01 on Tue. to $69.08.  December futures gained $2.825 but are $1.08 below the index

Sources: Bloomberg, Dow Jones, AP, DTN