HIGHLIGHTS

·       MARKET TREND—Decidedly lower: CU: down $.07; SQ: down $.19; WU: down $.07; KWU: down $.07 

·       MACRO:  There is little in the way of financial news, both domestic and international with earnings likely to be the focus for the time being.   ASIA—Mostly higher:Nikkei, -0.62%; Shanghai, +0.39%; Hang Seng, +0.53%.EUROPE: Lower—DAX, -0.58%; FTSE, -0.90%; CAC,-0.08%.   WALL STREET—Futures are weaker—DOW, -17; S&P, -3.00; NAS, -5.25.  EXTERNALS:  $ Index: -.207 @ 94.910; Aug Gold: +$1.60 @ $1,248;  Sep crude: +$.36 @ $46.13/bl.

·       T-storm Weather: Scattered thunderstorms affect most at some point(s) through Sat., followed by a few more thunderstorms next week.  Rain most likely averages near-or below-normal (0.50”-1.50”) in driest & wettest areas through 10 days, mainly from thunderstorms over Wed.-Sat. & unclear chances July 29+.  Temps average near-normal for most with sustained heat unlikely.

·       CU, down $.07 @ $3.7275; CZ, down $.0725 @ $3.8625.  Moderating weather led the funds to sell 12 KFriday   

·       SQ, down $.19 @ $9.90; SX, down $.1950 @ $10.0225.  Funds: sold 5 K SB, 2 SBM, 1 SBO. Board Crush: $.88, 0; LY, $.89

·       WU, down $.07 @ $4.9225; WZ, down $.0650 @ $5.16.  The funds liquidated 5 K to close out the week            

 CORN/SORGHUM

· &n​bsp;     Crop Ratings—% G/E for corn may be down 1-2 points this afternoon from last week’s 64% rating and versus 76% LY and in very near the 5-year average of 62%

·       More and more trade estimates seem to be in the 165-167 bpa range and below the 170.7 USDA estimate

·       Export Inspections—expected at 35-40, versus 43.7 LW and 51.4 in 2016

·       79% of the 2016 corn crop was in the silking state at this time; unlikely this year’s crop (40% LW) will see the same incremental increase as last year of 23%

·       U.S. corn unshipped book heading into new crop is down nearly 40% from 2016/410 mbu total is an 11-year low

SOYBEANS/WHEAT

·       Soybean ratings expected to decline 1-2 points from the 61% figure reported last week, versus 71% LY and 60% average

·       Soybean Export Inspections—estimated at 13-17 against 10.5 LW and 26.6 LY

·       Combined outstanding soybean sales of 449 mb are off 25% from a year ago; but doubtful if QI exports will fall as much

·       Wheat  inspections estimated at 19-24 with LW at 21.3

·       Spring Wheat ratings expected steady to 1 lower from LW’s 34% figure; compares to 68% LW; winter wheat harvesting estimated up 7-10 points at 82-85% versus 83% LY with the 5-year at 80%

ENERGY

·       Higher: CLU17, +$0.36 @ $46.13; EBU, +$0.36 @ $48.42; EBU-QCLU,+.01; RBU, +.0067; NGU, -.038; HOU, +.0102

·       Cash ethanol markets were weaker Friday: NY was 2 ½ cents lower @$1.6025; the Gulf, Tampa & LA ($1.80) were all $.02 lower; Dallas lost $.0175 and Chicago was off 1 7/8 cents to $1.5088

·       Ethanol RINs were $.01 lower with both 2016s and 2017s in a range of $.82-$.8450

·       The Aug RBOB/Aug ethanol spread firmed in $.0239 to+$.04430/gallon, premium ETOH 

  LIVESTOCK/POULTRY                         &nb​sp;           

·       Ch​oice boxed beef values were 74-cents lower on Friday at $206.91, and are down $2.44 vs. last week

·       Cattle on Feed: July 1 on feed, 104.5% (102.9% avg est); June place, 116.1% (106.2%); June Market, 104.0% (104.7%)

·       USDA mandatory pork carcass cutout eased 95-centson Friday to $102.40, and is $1.57 lower compared to last week

·       CME Lean Hog Index fell $0.33 on Friday to $91.67.  August futures were steady but are still $10.57 below the index

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