HIGHLIGHTS
· 6:00 AM Market Trend: Corn, Down ½; Soybeans, 7-9 Lower; Wheat, 1-2 Lower
· China’s HSBC PMI for April gained 3/10’s of a point to 48.3 but fell short of the 50.0 bench-mark for expansion, suggesting the country’s manufacturing sector continues to sputter. This helped to push the Hang Seng nearly 1% lower; Shanghai’s losses were moderate at -.26% and the Nikkei actually posted a 1.09% increase for the day. Europe is weaker in early trading with losses ranging from -.17% for the FTSE to -.40% for France’s CAC-40. U.S. futures point to a lower start: S&P, -2.25; Dow, -9 and the Nasdaq, -6.25. Gold is higher, up .4%; energy futures are mixed and the $ Index is .178 weaker at 79.95
· T-storm Weather: Mild weather focuses on the southern third to half of the central U.S. into the weekend, which leads to favorable conditions for planting in areas that are sufficiently dry. Although much of the central U.S. appears to be adequately-dry now, a system develops around 1.00” of rain in the northwest Corn Belt tonight and Thursday to slow planting; areas to the southeast receive 0.25” – 0.50” to allow planting to generally continue. The same system also develops thunderstorms in driest areas of the central / southern Plains today and tonight, but beneficial amounts are generally expected to focus on the eastern halves of Kansas and Nebraska. Changes occur this weekend as a large upper-level system emerges in the Plains as it disconnects from the jet stream. A cool, cloudy and rainy period gradually unfolds near the system this weekend and next week
· May Corn Down $.0050 at $4.9575; July Down $.0050 at $5.0125. The funds bought 6 K yesterday
· May SB Down $.09 at $14.7075; July Down $.0700 at $14.6375. Funds: sold 7 K SB; 6K SBM and 3 K SBO
· May Wheat Down $.0150 at $6.7150 July Down $.0250 at $6.77. Fund buying totaled 3 K on Tuesday
CORN/SORGHUM
· U.S. corn planting progress for week ending April 27 was 5% in 2013 and the five-year average (2009-2013) is 28%; milo planting progress was 27% in 2013 with the five-year average at 26%
· ATI Research: Look for U.S. corn exports to average 40-45mbu near-term; 30-35 Center Gulf, 5-10 PNW & 4-5 Interior
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Ethanol margins remain very strong; e.g. $1.36 per gallon vs. $0.28 in 2013. EIA report out today at 9:30 AM CDT
SOYBEANS/WHEAT
· U.S. soybean planting: No national total but combined progress from AL/AR/LA/MS is 18% vs. 10% in 2013 & 22% avg.
· ATI Research: Bias is U.S. soybean exports will average 5-6mbu per week over the next month vs. 8.0 last year
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T-storm Weather: 64% of U.S. HRW wheat was sharply drier than usual over the last 90 days vs. 24% one year ago
· ATI Research: Bias is U.S. all wheat exports will continue to average 18-22mbu per week near-term
ENERGY
· Futures are mixed: QCLM14, -$0.37 at $101.38; QRBM, +$0.0014; QNGM, -$.011; andQHOM, +$.0011
· A mixed trend was seen in cash ethanol markets Tuesday: Chicago unch; Gulf up 3; Dallas down 16; Tampa slipped 9; NY gained 4; and LA prices were off 4 at $2.84 ½ per gallon
· EIA estimates (API): Crude, +2.4 mb (+0.5); gasoline, -1.4 (-3.4); distillates, -0.3 (+0.6)
· RINs steady to slightly firmer: 2012’s up ½ to 42-44; 2013’s gained ½ to 44-45; and 2014’s were unch at 41 ½-42 ½
· The June RBOB/May ethanol spread narrowed $.0293 per gallon to $.8916 on Tuesday
LIVESTOCK/POULTRY  
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Choice boxed beef values increased $2.15 yesterday and have gained $9.09 over the last seven trading days
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The pork carcass cutout fell $2.40 yesterday and has lost $4.33 over the last two days
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Yesterday’s USDA Cold Storage report reviled largest decline in pork supplies during March on records back to 1970
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The USDA’s Iowa/Minnesota average cash lean hog price firmed 10-cents yesterday to $115.83
Sources: Bloomberg, Dow Jones, AP, T-storm Weather