HIGHLIGHTS
· 6:15 AM Market Trend: Corn, ¾ to 1 Higher; Soybeans, 4-6 Lower; Wheat, Steady to 2 Lower
· Early today, the Japanese Nikkei plunged to a 2014 low and below 14000 for the first time since late October. This comes on the heels of the collapse of U.S. stocks on Thursday, which saw the Nasdaq Composite Index notch its biggest one-day percentage decline in 2 ½ years. Greatest amount of selling was seen in shares of biotech, high-growth technology and Internet companies. Trends in U.S. stock indexes are slightly weaker this morning.
· T-storm Weather: A strong system brings heavy rainfall of 1.00” – 2.00” to the Corn Belt and Delta Sunday-Monday. Showers also occur in the Plains, but amounts of 0.05” – 0.25” are likely to be the most common in key areas of Kansas, Oklahoma, and Texas; 0.20” – 0.40” possible in parts of Colorado and Nebraska. Another system follows late next week, likely bringing additional rainfall to the Corn Belt and Delta, but chances are lower in the Plains. Additional rains likely follow beyond next week in the Corn Belt and Delta as a precipitation and temperature pattern similar to that of the last five months persists. Note that freezing temperatures early next week stay north of sensitive wheat
· May Corn Up $.01275 at $5.0250; July Up $.0125 at $5.085. The funds were even on the day
· May SB Down $.0375 at $14.785; July Down $.0475 at $14.6075. Fund activity: Sold 2 K SB; bought 1 K SBM and 1.8 K SBO
· May Wheat Down $.0125 at $6.61; July Down $.0175 at $6.77. The funds sold 3 K of wheat on Thursday
CORN/SORGHUM
· ATI Research: Old-crop corn export sales of 25.9mbu were a little light relative to trade expectations of 28-35, off 31% from last week and 30% below the 4-week average. Milo export sales for 13/14 were weak again at 67,00 bushels
· China cancelled 2.3mbu of U.S. corn export sales in the latest reporting week
· If May 2014 corn futures close above $5.01 ¾ today, it would be highest Friday settlement price since Aug. 30, 2013
· T-storm Weather: Total of 19% of U.S. corn production was much wetter than usual over the last 14 days
SOYBEANS/WHEAT
· ATI Research: Another positive week of old-crop soybean export sales at 2.9mbu, which was mid-range vs. trade expectations (0-6). This week’s total was up 20% from the previous week but down 8% from the prior 4-week avg.
· If May 2014 soybean futures close above $14.73 ¾ today, it would be highest Friday settlement price for a nearby soybean contract since Sept. 13, 2013
· ATI Research: Anemic old-crop wheat export sales of 1.5mbu (marketing year low); new-crop sales decent at 12.8
· T-storm Weather: Only 3% of U.S. SRW wheat was much wetter than usual over the last 30 days, limiting concern
ENERGY
· Futures are lower: QCLK14, -$0.08 at $103.32; QRBK, -$0.0052; QNGK, -$.003; and QHOK, -$.0030
· Cash ethanol markets were mostly firmer on Thursday: Chicago up 11; Gulf gained 10; Dallas and Tampa added 8; NY declined 10; and LA edged up a penny to $3.14 ½ per gallon
· RINs were weaker: 2012’s down 1 at 47 ½-49; 2013’s slipped 1 ¼ to 48 ½-49; and 2014’s off 1 ¼ to 46-47
· May RBOB/May ethanol spread is trading at $.5962 per gallon
LIVESTOCK/POULTRY   ; ;
· ; Choice boxed beef values eased 46-cents yesterday and have declined $8.64 over the last six trading days
· Cash cattle markets are quiet with feedyards asking $150 while packers bid $146. Cattle traded last week at $148
· The USDA mandatory pork carcass cutout value fell $1.84 yesterday and has declined $6.14 over the last four days
· The USDA’s Iowa/Minnesota average cash lean hog price fell $3.67 yesterday to $120.10
Sources: Bloomberg, Dow Jones, AP, T-storm Weather
Brian Basting
mail to: bbasting@advance-trading.com
http://www.advance-trading.com