HIGHLIGHTS
· TRENDS—Mixed: CZ, -$.0075; SX, +$.0325; WZ, -$.0025; KWU, +$.0125. Del’y: SBM, 86; HRW, 58; SB, 12; SRW, 11
· What caught my eye: Argentina is expected to import nearly 5 MMT of beans in 20-21, up from 3.8 million last year with the bulk of the total coming from Paraguay. Could make the S Am situation even more interesting with Brazil supplies getting tight
· World markets are mixed with no definitive explanation other than the U.S. taking a breather after recent solid gains
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Asia—Mostly weaker: Nikkei, +0.94%; Shanghai, -0.58%; Hang Seng, -0.45%
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EUROPE: Higher—DAX, +1.13%; FTSE, +0.64%; CAC, +1.59%
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WALL STREET: Taking a pause, futures lower --DOW, -46; S&P, -14; NAS, -120.5
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EXTERNALS: Oct crude, -$0.80 @ $41.71; Gold: -$9.10 @ $1,936; Sep $ Index, +.106 @ 92.940
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T-storm Weather®: dry weather prevails through at least Saturday across the U.S. Corn Belt. Temperatures vary widely each day through then as a series of cold and warm fronts pass, averaging near-normal through then with maximums in the 70s-80s-90s and minimums in the 40s-50s-60s. A small but heavy thunderstorm cluster then affects eastern IA, northern IL, and WI from Saturday night into Sunday where rainfall amounts are increased to 0.50” to 1.50”
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CZ, dn $.0075 @ $3.58; CH, dn $.0075 @ $3.6850. Fund buying yesterday amounted to 3 K
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SX, up $.0325 @ $9.6525; SF, up $.03 @ $9.7125. Funds bot 3 6 SB, 8 K SBO, even SBM. Board crush: $0.76 (V/X), -1; LY, $0.89
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WX, dn $.0025 @ $5.58; WH, dn $.0050 @ $5.6625. The funds sold an estimated 4 K at mid-week
CORN/SORGHUM
· Export Sales to be released at 7:30 am CDT. Trade expects (2) - 4 mbu for 19/20 corn and 59 - 98 for 20/21
· T-storm Weather®: temps turn sharply cooler for all U.S. crops next week, accompanied by organized rain in much of Corn Belt Tue.-Wed.; some frosts follow in/near ND & northwestern MN as a drier pattern resumes/continues
· Ethanol grind: total of 922,000 barrels/day for the week ending Aug. 28—down 9 thousand (1.0%) versus last week and 9.0% lower compared to last year’s 1,013,000
· T-storm Weather®: much warmer than normal temps impact Ukraine corn near-term; 0.25”-0.75” of rain on Friday
SOYBEANS/WHEAT
· Export Sales to be released at 7:30 am CDT. Trade expects 0 - 4 mbu for 19/20 soybeans and 37 - 66 for 20/21; soymeal, 25 - 125 K MT for 19/20 and 50 - 250 for 20/21; soyoil, 0 - 10 for 19/20 and 5 - 30 for 20/21
· T-storm Weather®: temps turn sharply cooler for all U.S. crops next week, accompanied by organized rain in much of Corn Belt Tue.-Wed.; some frosts follow in/near ND & northwestern MN as a drier pattern resumes/continues
· Export Sales to be released at 7:30 am CDT. Trade expects 13 - 22 mbu for 20/21 wheat
· T-storm Weather®: rain chances remain low over the next 10 days for wheat areas in Argentina
ENERGY
· Lower: CLV20, -$0.80 @ $40.71; EBX, -$0.82 @ $43.61; EBX-QCLV, -0.06; RBV, -.0149; NGV, +.009; HOV, -.0305
· Chicago ethanol was up sharply, +$.0425 to $1.4510; basis, again mostly weaker: NYC, -$.04275 @ +$.07125; Gulf, -.04025 @ +$.0540; Dallas, -$.05525 @ +$.0190; Tampa, -$.04525 @ +$.11900; LA, +$.00975 @ +$.10400
· Ethanol RIN values, weaker: 2019’s, -0.500 @ 43 - 45; 2020’s: -0.75 @ 45-47         </wbr>
· The Oct RBOB/Sept ethanol spread is trading -.1887, off $.0131 with the premium to ethanol
LIVESTOCK/POULTRY   wbr>
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Choice boxed beef eased $0.76 on Wednesday, and is $3.87 lower compared to a week ago
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Wednesday’s week-to-week decline in choice boxed beef was the largest since July 17
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The mandatory pork carcass cutout value declined $0.47 on Wed. to $72.89, but is still up $2.01 versus last week
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CME Lean Hog Index gained $0.71 on Wed. to $57.51. October futures firmed $1.375 but are $1.110 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather®
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