HIGHLIGHTS

• MARKET TREND—Slightly firmer: CZ: up $.0125; SX: up $.02; WZ: up $.0075; KWZ: up $.0050. 

·       MACRO:  European earnings disappoint; Catalonia appears determined to seek independence from Spain; nervous markets. ASIA—Mostly weaker:  Nikkei, +0.40%; Shanghai, -0.35%; Hang Seng, -1.92%.  EUROPE: Definitely weaker: DAX, -0.65%; FTSE, -0.36%; CAC, -0.52%.   WALL STREET—The opening doesn’t look pretty—DOW, -103; S&P, -11.25; NAS, -39.75.  EXTERNALS:  $ Index: -.043 @ 93.185; Gold: +$4.50 @ $1,286; Dec crude:-$0.71 @ $51.55/bl. 

• Weather: Dry weather is forecast for the Western U.S. Corn Belt through Friday.  Scattered showers and thunderstorms develop on Saturday; light to moderate rain amounts with locally heavier totals are expected.  Temperatures forecast to be above to much above normal through Monday.  The Eastern Corn Belt is also forecast to see dry weather through Friday.  Dry conditions or just a few light showers develop on Saturday.  Temperatures forecast to be above to much above normal into the weekend
• CZ, up $.0125 @ $3.4975; CH, up $.01 @ $3.6325.  Fund selling continues with another 3 sold at mid week   
• SX, up $.02 @ $9.8625; SF, up $.0150 @ $9.9650.  Funds:  Bot 2 SB; 1 SBM & sold 1 SBO.  Board Crush: $.91, -1; LY: $.82
• WZ, up $.0075 @ $4.3075; WH, up $.0050 @ $4.4975.  Light selling again, 2 K on Wednesday

CORN/SORGHUM

·       Export Sales to be released at 7:30 am CDT.  Trade expects 31-43 mbu for 17/18 corn

• Weather: For the Eastern Corn Belt, scattered light to moderate showers and thunderstorms develop on Sun. with some locally heavy totals.  Dry weather is forecast for the Western Corn Belt Oct. 22-23; a few light showers on Tue. 

·       ATI Research: U.S. corn mature on average increases approximately 4% over Oct. 15-22 to approximately 98%, while corn harvest on average increases approximately 12% over Oct. 15-22 to approximately 59%

• Ethanol grind: Total of 1,019,000 barrels/day for week end Oct. 13—up 52 thou v. prior week & up 2.1% v. last year
• Through Oct. 18, the 2017 crop insurance harvest price for December 2017 corn futures has averaged $3.4956

SOYBEANS/WHEAT

·       Export Sales report.  Trade expects 48-62 for 17/18 soybeans; 100-250 for 17/18 soymeal; and 5-22 for 17/18 soyoil

·       ATI Research: U.S. soybean harvest on average increases approximately 13% over Oct. 15-22 to approximately 73%

• Through Oct. 18, the 2017 crop insurance harvest price for November 2017 soybean futures has averaged $9.7396

·       Export Sales report.  Trade expects 9-17 mbu for 17/18 all wheat

·       Weather: In Australia, light to moderate showers occur today across wheat areas of southern New South Wales and eastern Victoria.  In contrast, mostly dry conditions are forecast in the state of Western Australia

ENERGY

·       Weaker:  CLZ17, -$.71 @ $51.55; EBZ, -$0.69 @ $57.46;EBZ-QCLZ, +$0.02; RBZ, -.0084; NGZ, +.005; HOZ, -.0207

·       Cash ethanol markets were weaker on Wednesday: Chicago down 1 1/8; New York off 1 ¾; Gulf fell 2; Tampa declined 1; Dallas eased ½; and LA was 2 ½ lower at $1.52 ½ per gallon

·       Ethanol RINs posted gains on Wednesday: 2016’s and 2017’s firmed 1 ½ to 78 ½-83

·       The Nov RBOB/Nov ethanol spread widened further, out $.0198 to +$.23190/gallon on Wednesday  

  LIVESTOCK/POULTRY                                   ​  

• Choice boxed beef values eased 40-cents on Wednesday to $197.26, but are still 94-cents higher vs. a week ago
• Pre-report estimates for Friday’s Cattle on Feed: Oct. 1 On-Feed 104.6%; Sep. Placed 107.3%; Sep. Marketed 102.7%

·       USDA mandatory pork carcass cutout value fell $1.00 on Wed. to $72.88, and is 12-cents lower compared to last week

·       CME Lean Hog Index gained $1.21 on Wed. to $62.21.  December futures firmed $1.575 & are $1.54 above the index 

Sources: Bloomberg, Dow Jones, AP, DTN