HIGHLIGHTS

• MARKET TREND—Weaker:  CU, -$.0325; SU, -$.1475; WU, -$.0875; KWU, -$.0875
• MACRO:  Most global markets are higher this morning, following Fed Chair Powell’s positive comments about the U.S. economy on Friday.   Asia—Higher:Nikkei, +0.88%; Shanghai, +1.89%; Hang Seng, +2.17%.  EUROPE:  Higher:  DAX,+0.53%; FTSE, +0.19%; CAC, +0.44%.  WALL STREET: Futures are higher as well:DOW, +70; S&P, +6.50; NAS, +29.25.  EXTERNALS: Oct crude: -$0.29 @ $68.43; Dec Gold: -$2.40 @ $1,210; Dec $ Index, +0.052 @ 94.695

·        T-storm Weather: Heat affects most U.S. corn & soybeans today as highs around 90°F coincide with lows around 70°F.  Sharp cooling follows as a cool front passes Tue.-Wed. & highs fall to the 60s-70s, but cooling will be very brief as heat quickly spreads from west to east Thu.-Fri.  Over the next 1-3 days, heavy thunderstorms are imminent with the northern third of the production belts (including driest areas of MN & the Dakotas), followed by scattered thunderstorms across a wide area Tue.Wed.

·       CU, dn $.0325 @ $3.4525; CZ, dn $.0325 @ $3.5950.  The funds were even in Friday’strade         

• SU, dn $.1475 @ $8.2725; SX, dn $.1525 @ $8.40.  Funds: bot 1 SB, 1 SBO, sold 1 SBM.  Board Crush: $1.56, $.00, LY: $.94
• WU, down $.0875 @ $5.06; WZ, down $.0825 @ $5.2825  The funds sold 7 K to close out the week         

 CORN/SORGHUM

• Consultant: USDA Crop Progress report to peg U.S. corn Good/Excellent 69-70% v. 70% last week and 62% last year

·       T-storm Weather: Rounds of heat affect central U.S. corn through the first week of September.  Waves of energy continually form along the rim of heat, triggering thunderstorms in varying areas on each of the next 10 to 14 days

• ATI Research: The 5-year avg. for U.S. corn dented gains ~16% from Aug. 19-26 to 42%.  However, corn dented this year as of Aug. 19 was already 44%; with warmer temps forecast, suggests the potential for an early start to harvest

·       December 2018 corn futures on Fri. closed at $3.62 ¾; one year ago, December 2017 corn futures settled at $3.53 ½

SOYBEANS/WHEAT

• Consultant: USDA Crop Progress report to peg U.S. soybean Good/Excellent 65-66% v. 66% last week & 61% last year
• T-storm Weather: A total of 11% of U.S. soybean production was drier than normal over the 14-day period ending Saturday morning, marking the lowest coverage in late-August in more than six years

·       November 2018 soybean futures on Fri. closed at $8.55 ¼; one year ago, November 2017 soybeans settled at $9.44 ½

·       Export Inspections released at 10 am CDT; Wheat, 21.2 mbu needed; 12.7 last week

• T-storm Weather: In Australia, 0.50"-1.00" of rain expectedly aided northern ~20% of wheat over the weekend.  Going forward, most wheat outside WA (incl. ~60% of total production) only receives 0.20"-0.50" over next 10 days

ENERGY

·       Lower: CLV18, -$0.29 @ $68.43; EBV, -$0.26 @ $75.56; EBV-QCLV, +$0.02; RBV, -0.0031; NGV, -.009; HOV, -.0066

·       On Friday, cash ethanol markets were mixed: Chicago was quoted at $1.3125, up $0.0075; Basis to Chicago—New York, +$0.0875; Gulf, +$0.0975; Dallas, +$0.0225; Tampa, +$0.1325; and LA, +$0.155

·       Ethanol RINs were mixed on Friday: 2017’s eased ½ to 15-16 ½; but 2018’s gained 1/8 to 20 ½-21

·       The September RBOB/September ethanol spread was little changed Friday, narrowing $.0003 to $.7649/gallon 

 LIVESTOCK/POULTRY                          &nbs​p;           

• Choice boxed beef values fell $1.05 on Friday to $213.32 but are still $1.94 higher vs. last week
• Cattle on Feed: Aug. 1 on feed, 104.6% (104.5% avg est); July placed, 107.9% (106.4%); July Market, 105.0% (105.0%)
• USDA mandatory pork carcass cutout value declined $1.05 on Friday to $63.15 and is $2.88 lower vs. a week ago 
• CME Lean Hog Index was $0.57 lower on Fri. at $48.93.  October futures firmed $0.60 & are $2.845 above the index

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