HIGHLIGHTS

• MARKET TREND—Weaker:  CU, -$.0250; SU, -$.0450; WU, -$.05; KWU, -$.0625
• MACRO:  Wire services:  investors assessing the potential impact of guilty pleas by Mssrs Cohen and Manafort.   Asia—Mostly firmer: Nikkei, +0.64%; Shanghai, -0.70%; Hang Seng, +0.63%.  EUROPE:  Mostly higher:  DAX, -0.04%; FTSE, +0.29%;CAC, +0.21%.  WALL STREET: Futures taking a respite: DOW, -27; S&P, -3.50; NAS,-2.50.  EXTERNALS: Oct crude: +$0.82 @ $66.66; Dec Gold: +$3.70 @ $1,204; Dec $ Index, -0.115 @ 94.610

·        T-storm Weather: Scattered showers expected through the Corn Belt Thursday-Saturday as the recent cool period dissipates. A very warm/hot period is likely for the following 3-5 day period into early September. This will in turn be conducive to above normal rainfall amounts of from 1” to 2” for the more northern regions of the Corn Belt for the next 7 to 10 days. Overseas, rainfall potential for Eastern Australia later this week looks very good; Canadian Prairies will remain on the arid side

·       CU, down $.0250 @ $3.5725; CZ, down $.0250 @ $3.7175.  More spec selling, 8 K on Tuesday       

• SU, down $.0450 @ $8.70; SX, down $.0525 @ $8.8075.  Funds: sold 5 SB, 5 SBM, bot 1 SBO.  Board Crush: $1.55, +$.01, LY: $.91
• WU, down $.05 @ $5.2225; WZ, down $.06590 @ $5.4125.  The funds again sold 8 K       

CORN/SORGHUM

·       CZ18 closed today at $3.74 ½ , 14 ½ cents above CZ2017’s close a year ago

·       Corn inspections the past 4 weeks are averaging 51.5 million per week, a 54%/18.2 mbu increase versus 2017

·       Outstanding old & new crop corn sales as of August 9^th are 2^nd highest in 17 yearswith SON exports expected to be up 60% from last fall, in the 570-590 mbu range

·       Monday evening, Dr. Cordonnier noted his corn yield estimate was unchanged at 178 but with a slightly negative bias as rapid crop development may limit the grain filling process

·       Despite a slightly smaller corn crop (just 18 mbu less) and a $.20/bu higher farm price, the USDA sees feed/residual use up 75 mbu as GCAU’s are expected to be nearly 2 million/1.8% greater in the coming year

SOYBEANS/WHEAT

·       SX18 ended the day $.07 ¼ lower at $8.86, against $9.36 ¼ on Tuesday, August 22,2017

·       The pace of wheat exports during the LH of July/FH of August has fallen to a 10-year low of 14.5 mbu/week, 8 less than LY but not surprising as unshipped sales through August 9^th stood were within 15 million of a decade-long low

·       Cordonnier added ½ bpa to bean yield Monday, now at 51.5 , 1/10 below the USDA; neutral to higher bias

·       Despite the absence of China demand, soybean inspections the past month are running at an all-time seasonal high of 30 per week, a 50% increase over last year.  Not surprising as “known” non-PRC old crop sales are up 50% from LY

ENERGY

·       Higher: CLV18, +$0.82 @ $66.66; EBV, +$1.08 @ $73.71; EBV-QCLV, +$0.26; RBV, +0.0249; NGV, +.002; HOV, +.0275

·       Cash ethanol markets were again softer: Chicago was quoted at $1.35625, down 1/8^th; Basis to Chicago—New York, +$0.0888; Gulf, +$0.0938; Dallas, +$0.0337; Tampa, +$0.16888; and LA, +$0.2688

·       EIA Estimates (API): crude, -2.0 (-5.2); Gasoline, -0.7 (-0.9); Distillates, +1.3 (+1.8).  ETOH: 1.084 mbpd prod; stx, 22.79

·       Ethanol RINs firmed again: 2017’s gained 1/8^th to 16 ¾ to 17 and 2018’s were also up 1/8 at 20-20.50

·       The September RBOB/September ethanol spread added another $.0094 Tuesday, to$.6695/gallon 

 LIVESTOCK/POULTRY                            ​;          

• Choice boxed beef values fell 41-cents on Tuesday to $213.57 but are up $3.93 compared to a week ago
• Cash cattle was quiet on Tuesday with bids and offers unavailable and cash trade not expected until late in the week
• USDA mandatory pork carcass cutout value declined $1.10 on Tuesday to $64.99 and is down $4.08 vs. last week 
• CME Lean Hog Index fell $0.80 on Tuesday to $50.71.  October futures eased $0.25 but are $5.515 above the index

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