HIGHLIGHT

• MARKET TREND—Slightly lower: CZ: steady; SF: down $.0075; WZ: dn $.0125; KWZ: dn $.01. 

·       MACRO.  Europe lower on earnings; Brexit deadlock; can Congress come to terms on the tax bill--WSJ? ASIA—Mostly lower:  Nikkei, -0.82%; Shanghai, +0.16%; Hang Seng,-0.05%.  EUROPE: Lower: DAX, -0.10%; FTSE, -0.24%; CAC, -0.29%.   WALL STREET—Futures are weaker, again—DOW, -40 S&P, -8.25; NAS, -21.25.  EXTERNALS:  $ Index:+.043@ 94.395; Gold: -$2.80 @ $1,285; Dec crude: -$0.06 @ $57.11/bl.  Deliveries: RR: 46; SB, 130

• T-storm Weather: In the U.S., numerous systems pass over the next 10 to 14 days, but a lack of humidity keeps cattle and HRW wheat in the central and southern Plains dry, instead keeping light rains further east in the Corn Belt.  Temperatures continually fluctuate over the next 10 to 14 days, averaging close to normal for cattle and HRW wheat with maximums in the 30s-40s on coldest days and 60s-70s on warmest days
• CZ, unch @ $3.4150; CH, unch @ $3.5475.  The report (larger yield) incentivized big selling, 12 K    
• SF, down $.0075 @ $9.8435; SH, down $.01 @ $9.95.  Funds:  Sold 5 SB, 4 SBM, 2 SBO.  Board Crush: $.92, +3; LY: $.71
• WZ, down $.0125 @ $4.2725; WH, down $.01 @ $4.44.  The funds bought 2 K on report day    

CORN/SORGHUM

·       Unshipped 17/18 export sales of U.S. corn as of Nov. 2 were 538 mbu—down 16% from 637 mbu at this time last year

• ATI Research: The USDA’s decision on Thursday to increase its 2017/18 U.S. corn export forecast by 75 mbu in its  Supply/Demand report is hard to justify for the moment, even with aggressive buying from Mexico
• T-storm Weather: Scattered thunderstorms focus on northern growing areas of Brazil over the next few days, followed by a lull in rain before thunderstorms return five to seven days later

·       Consultant: Argentina corn crop est. is steady at 42.0 MMT.  Planting typically slows in Nov. before picking up in Dec.

SOYBEANS/WHEAT

·       ATI Research: World soybean supplies remain ample, despite USDA’s increase in imports by China in Thu. WASDE

• T-storm Weather: Much of Argentina will likely be drier than normal over the next 10 to 14 days

·       Consultant: The short-term drier weather forecast in Argentina would be positive for soybean planting progress, although if the pattern persists for an extended period of time it would turn negative

·       ATI Research: Despite the USDA’s decision in Thursday’s WASDE to leave Australia wheat production unchanged, bias is final production could still decline by 1.0-2.0 MMT

• Unshipped 17/18 export sales of U.S. all wheat as of Nov. 2 were 201 mbu, which is down 2% vs. 2016

ENERGY

·       Mixed:  CLZ17, -$.06 @ $57.11; EBF,+$0.11 @ $64.04; EBF-QCLZ, +$0.16; RBZ, -.0005;NGZ, +.001; HOZ, +.0033

·       Cash ethanol markets, were generally firmer: Chicago is quoted at $1.40 ¾, down $0.0125;  Basis to Chicago—New York, +10, up 1; Gulf, +6, unch; Dallas, +1, down ¾; Tampa, +14 ¾, down ¾; and LA, +18 ¼, up ¼ 

·       Ethanol RINs shed 2 ¼ cents: 2016’s were 89 ½-90; 2017’s, 89-90 ½;  & 2018’s, 88 ½ -90

·       The Dec RBOB/Dec ethanol spread gained $.0044 on Thursday, expanding to+$.37970/gallon 

  LIVESTOCK/POULTRY                        ​;             

• Choice boxed beef values eased 39-cents on Thursday to $212.74, but are still $4.49 higher vs. a week ago
• Dressed steer weight for week end Oct. 28: 901 lbs, up 2 lbs v. last week, 896 for 4-week avg. and 917 last year

·       USDA mandatory pork carcass cutout value firmed $1.05 on Thu. to $80.82, and is up $2.44 compared to last week

• CME Lean Hog Index fell $0.41 on Thu. to $67.94.  December futures declined $0.375 & are $4.765 below the index

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