HIGHLIGHTS
· MARKET TREND—Higher: CU: Up $.04; SU: Up $.18; WU: Up $.0425; KWU: Up $.0075
· MACRO: The announcement of a starting date for the Shenzhen-Hong Kong trading link lifts some markets. ASIA: Shanghai gained 2.45%; the Hang Seng closed up .73% but the Nikkei stumbled .30%. EUROPE: Global growth worries had Europe weaker but all 3 major markets are now slightly firmer—CAC, +.07%; FTSE, +.09%; DAX, +.35%; WALL STREET: Wire services say oil points to a higher opening, DOW, +33; NAS, +9.75; S&P, +3.50EXTERNALS: The $ Index is off .097 @ 95.585; Sep Gold, +$2.70 @ $1,339.50; Sep WTI up $.19 @ $44.58. Deliveries: 0 SBM; 108 SBO; 229 SB; 0 ETOH
· T-storm Weather: A quasi-tropical circulation in the U.S. southern Delta slowly drifts across the southeast half of the Corn Belt through Wednesday, producing a large swatch of very heavy rainfall for corn and soybeans within each region—including driest areas of Indiana and Ohio; 1.75”-3.00” occurs (with pockets of 5.00”+) as the system gradually passes, especially from central and southern Illinois through Ohio. Temps remain near-normal into mid-week, then turn much warmer from west to east Wed.-Thu.
· Corn: CU Up $.04 @ $3.2625; CZ Up $.0375 @ $3.3675. The funds bought 3 K in Friday’saction
· SB: SU Up $.18 @ $10.17; SX Up $.1750 @ $9.99255. Funds: Sold 4K SB & 3K SBM, bot 4K SBO. Sep crush, +$.02, $.85; LY: $1.10
· Wheat: WU Up $.04 @ $4.2;50 WZ Up $.02575 @ $4.4275. The funds bought 5 K on Friday
CORN/SORGHUM
· ATI Research: Yield chg August USDA report v. 2015: IN, +37 (to 187); IL, +25 bpa (200); MO, +24 (166); OH, +10 (163)
· USDA Crop Progress: Good/Excellent U.S. corn rating could be a point higher or a point lower compared to last week’s 74%, although that would still be above the 69% seen in 2015
· T-storm Weather: A strong system drags sharply cooler air southward across central U.S. Thu.-Sat. A seasonable to cool period unfolds over Aug. 19-22. Scattered rain dot much of region as front passes; 0.25”-0.75” within Thu.-Sat.
· Export Inspections released at 10 AM CDT; Corn, 53.5 mbu needed; 57.2 last week. Milo—3.9 needed; 8.6 last week
SOYBEANS/WHEAT
· ATI Research: Yield chg August USDA report v. 2015: MO, +7.5 (to 48); IN, +5 bpa (to 55); WI, +2.5 (52); OH, +2 (52)
· USDA Crop Progress: Good/Excellent U.S. soybean rating could steady vs. last week’s 72% but still above 63% in ‘15
· Export Inspections released at 10 AM CDT; Soybeans, 22.4 needed; 35.7 last week
· T-storm Weather: Cool weather for U.S. soybeans Aug. 19-22; warmer and stormier pattern resumes around Aug. 24
· ATI Research: USDA report increases FSU-12 wheat exports for 2016/17 by 7.5 MMT vs. July to a record 53.1 MMT
· Export Inspections released at 10 AM CDT; Wheat, 18.0 needed; 13.8 last week
ENERGY
· Mixed: CLU16, +$.20, $44.69; EBV,+0.16; EBV-CLU, $2.46, -$.02; RBU, -.0064; NGU, -.011;HOU, +$.0078
· Cash ethanol markets were mixed on Friday: Chicago down 3/8; New York declined 2; Gulf off ½; Dallas steady; Tampa gained ½; and LA was unchanged at $1.55 ¼ per gallon
· Ethanol RINs eased: 2014’s down ¾ at 77 ½-79 ½; 2015’s off ¾ at 77 ½-79 ½; and 2016’s firmed 2 to 80-82
· The Sep RBOB/Sep ethanol inverse lost $.0162 on Friday to settle at -$.0381/gal
LIVESTOCK/POULTRY    
· Choice boxed beef values were 39-cents lower on Friday at $201.19, but are still up $2.19 compared to last week
· Light trading developed in parts of the North on Friday with dressed prices at $187, nearly $1 lower vs. a week ago
· USDA mandatory pork carcass cutout value was 43-cents lower on Friday at $73.98, and is down $2.33 vs. last week
· CME Lean Hog Index was $0.59 lower on Fri. at $68.20. October futures up $1.575 but are still $8.20 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather