HIGHLIGHTS

·         Market Trend:  Corn, Up ½ to 2+ (CK); Soybeans, 2-3 Lower;  Wheat, CHI, Down 3-4

·         Mixed results in Asia this morning—the Hang Seng rose 1% after People’s Bank of China introduces programs to boost mortgage lending in response to a weakening property market; Shanghai and the Nikkei both close .14% lower.  Europe is unanimously weaker with the FTSE .13% lower; the DAX, down .16% and the CAC 40, off .19%.  The trend is likely to continue as Wall Street opens:  futures are lower with the S&P, -2.5 the Dow, -11 and the Nasdaq, -5.75.  Gold is $7.25 to the plus side; energy futures are all higher and the $ Index is trading .080 weaker at 80.245

·         T-Storm Weather: Widespread rainfall of 1.00 – 2.00” affects the eastern Corn Belt and Delta intoThursday.  Cool to unseasonably-cool weather generally dominates elsewhere.  Though well-organized rainfall does not occur in these areas, a couple pockets of light showers are likely.  Heat returns to the southwest Plains this weekend, and above-average warmth (maximums in 70s-80s) gradually envelops all areas by early next week as coolness retreats.  Warmth also causes a stormy pattern to develop, thereby closing a planting window after 2-4 days of improved conditions  

·         May Corn Up $.0225 at $5.0550; July Up $.0050 at $5.0325.   The funds bought 2 K Tuesday

·         May SB NA; July Down $.0325 at $14.8050.  The funds bought 7 K SB, 5 K SBM along with 3 K SBO

·         May Wheat NA; July Down $.0375 at $7.0550  The funds sold 6 K yesterday

CORN/SORGHUM

·         U.S. corn planting progress for week ending May 18 was 65% in 2013 and the five-year average (2009-2013) is 76%; milo planting progress was 34% in 2013 with the five-year average at 39%

·         ATI Research: Look for U.S. corn exports to avg. 43mbu/week the next month; 30-33 Gulf, 7-10 PNW and 4-5 Interior

• Ethanol margins have rebounded: $0.75 per gallon vs. $0.53 last week.  EIA report out today at 9:30 AM CDT

·         Corn deliveries:   7

SOYBEANS/WHEAT

·         U.S. soybean planting progress for week ending May 18 was 21% in 2013 & the five-year average (2009-2013) is 38%

·         ATI Research: Expect near-term U.S. soymeal exports to avg. about 10 K higher than last year & 20 K above 5-year avg.

• T-storm Weather: A spring wheat planting window likely opens within May 17-21 following 5-7 days of dry weather

·         ATI Research: U.S. all wheat exports are forecast to remain 20-25mbu per week throughout the remainder of May

·         Soy complex deliveries:  0 SB; 50 SBM; 104 SBO; Wheat: 0 KC; 100 CHI

ENERGY

·         Futures are all positive: QCLM14, +$0.24 at $101.94; QRBM, +$0.0098; QNGM, +$.023; andQHOM, +$.0037

·         Cash ethanol markets edged lower Tuesday: Chicago and Gulf were off 2; New York slipped a penny; Tampa and Dallas dipped 3; and LA was down 1 at $2.40 ½ per gallon

·         EIA estimates (API): Crude, 0.0 mb (+0.9); gasoline, +0.1 (-2.0); distillates, +0.6 (+0.9)

·         RINs slightly higher: 2012’s up 1 to 46 ½-47; 2013’s gained 1 to 47 ½-48; and 2014’s climbed 1 ½ to 44 ¾-47 ½

·         The June RBOB/June ethanol spread added another 2+ cents, settling at $.7972/gallon

LIVESTOCK/POULTRY                                      &nbs​p;                    

• Choice boxed beef values gained $2.79 yesterday and have increased $3.35 over the last two days
• Cash cattle are quiet with feedyards asking $148, but no packer bids reported.  Cash cattle traded LW at mostly $146
• After increasing $1.98 on Monday, the USDA mandatory pork carcass cutout value fell $1.81 yesterday
• The USDA’s Iowa/Minnesota average cash lean hog price gained $1.76 yesterday to $110.12

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