HIGHLIGHTS

• MARKET TREND—Mostly higher: CZ, +$.0025; SX, unch; WZU, +$.0275; KWZ, +$.0275 
• MACRO:  The 10-year Treasury yield edged higher again, from 3.196% to 3.206% yesterday.  Analysts expect a 180 K increase in September payroll data. ASIA: Lower: Nikkei, -0.80%; Shanghai, closed; Hang Seng, -0.19%.  EUROPE: Lower:  DAX, -0.60%; FTSE, -0.59%; CAC, -0.35%. WALL STREET: Futures are mixed: DOW, +4; S&P, -1.00; NAS, -13.00. EXTERNALS: Oct crude: +$.24 @ $74.57; Dec Gold: +$4.40 @ $1,206;Dec $ Index, +0.088 @ 95.100. Del’y: SBM 68; SBO, 407; ETOH, 0

·        T-storm Weather: A very wet period will continue through the end of next week as several small-scale weather systems lead the way for a larger one later in the period.  The net result will be rainfall amounts 3-6” from OK-KS northeast through IA, MN and WI with other parts of the Midwest receiving 1-2” amounts. As the coverage is for virtually the entire Central Belt, river and fiel flooding will bel common-place

·       CZ, up $.0025 @ $3.6775; CH, unch @ $3.7925.  Fund buying was pegged at 6 K yesterday                   

• SX, unch @ $8.5925; SF, unch @ $8.73.  Funds; even SB, bought 2 SBM, sold2 K SBO.  Board Crush: $1.53, +2, LY: $.92
• WZ, up $.0275 @ $5.2075; WH, up $.0225 @ $5.39.  The Managed Money sector bought 3 K in Thursday trading              

CORN/SORGHUM

·       Ex​port Sales on corn at 56.3 mbu were near the high end of the 39-63 trade range; well above the 33+/week needed

·       Milo sales came in at 800 K bushels, still well below the implied rate of 3.5 mbu/week to meet the USDA forecast

• CZ appears to be in a narrow trading range of $3.63 to $3.70 for the time being, some 17-20 cents below year-ago #’s
• Unshipped corn sales of just under 600 mbu represent a 67%/240 mbu increase over last year at this time and are the second largest end of September ever, trailing the 07/08 total of 683 million

SOYBEANS/WHEAT

·       Soybean sales of 55.9 million topped the 33-55 mbu trade range with Mexico accounting for almost 21 mbu of this week’s total.  This week’s activity was double the implied rate of 26.9 needed

• Meal sales were surprisingly strong for old crop at 59 K (trade: -200 to 0) and the 412 K MT new crop total was especially impressive, and versus 200-500 expected
• Wheat sales fell from 24.1 mbu last week, to 16.0, slightly above the 14.5 mbu trade midpoint with 17.4 needed
• T-storm Weather: dry weather will be the norm into Monday for Argentina with limited amounts of rainfall the remainder of the week which should be generally favorable for planting and crop development

ENERGY

·       Higher: CLX18, +$.24 @ $74.57; EBZ, +$0.02 @ $84.60; EBZ-QCLX, -$0.24; RBX, +0.0022; NGX, +.041; HOX, +.0036

·       Chicago ethanol gained 7/8’s of a cent to $1.29 ¼; basis levels vs Chicago were again mixed—New York, +$0.0150 @ $.11 ¾; Gulf +1/8 @ $.10; Dallas, -5/8’s @ $.02 ½; Tampa, - ¼ @ $.15 ½ and LA, -3/8’s @ $.16 ¼    

·       Ethanol RINs were once again a ½ cent weaker: 2017’s @ 9 - 10; 2018’s were @ 13 ½ to 14 ½             

·       The Nov RBOB/Oct ethanol spread narrowed in $.0474 to +$.7804 per gallon in Thursday’s trading  

 LIVESTOCK/POULTRY                         &n​bsp;            

• Choice boxed beef values closed $.56 lower yesterday at $203.86
• Cash cattle trading remained light as the week drew to a close with asking prices remaining at $114 to $115 live & $175 or so higher dressed
• USDA mandatory pork carcass cutout value increased $1.47 to $79.96 
• CME Lean Hog Index gained $0.31 on Thursday to $69.15.  October futures firmed $.025 to $67.50

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