· MARKET TREND: CK, Up $.0175; SK, Down $.02; WK, Up $.03; KWK, Up $.0275
· Equity stock rally takes a breather, oil weaker as workers in Kuwait end 3-day strike. ASIA: Shanghai falls 2.3%; Hang Seng loses .93% while the Nikkei posts a modest .19% gain. EUROPE: Lower at mid-day with the FTSE down .50% and both the DAX and CAC 40 off 11-12%. U.S. futures lean towards a lower start with the DOW off 30; the NAS is 4.50 weaker and the S&P, down 3. OUTSIDE markets have the $ Index .058 higher @ 94.12; Gold is $5.20 lower @ $1,248.10 & May WTI is down $.84 @ $40.24
· T-storm Weather: Pockets of rain & thunderstorms occur within much of the Corn Belt, Delta, & Plains through Friday; 0.67" to 1.33" amounts. All rain from this system ends today in the Plains, & Thu.-Fri. in the Corn Belt & Delta. Approx. four days of dry and mild weather follow. Warming occurs as a long feed of southerly winds develop, pulling tropical air far to the north. Cooler air in the northern U.S. sets up a sharp north-south temperature gradient. This setup ultimately produces periods of rain from Sun.-Tue forward. Significant rain is most likely in the Plains and western half of the Corn Belt through at least early May
· CK, Up $.0175 @ $3.8625; CN, Up $.0175 @ $3.9125. 3rd day in a row—funds buy 15 K
· SK, Down $.02 @ $9.8350; SN, Down $.02 @ $9.9275. Fund activity: Bought 12 K SB; 8 K SBM and 5 K SBO
· WK, Up $.03 @ $4.8925; WN, Up $.03 @ $4.9725. The funds bought 7 KTuesday
CORN/SORGHUM       ;
· December 2016 corn futures closed at $3.96 ½ on Tue.--highest settlement price for the contract since Dec. 18, 2015
· ATI Research: Bias is U.S. corn exports over the near term should average in the 40-45 mbu per week range
· Consultant: Brazil corn crop estimate lowered 1.0 MMT to 82.0 MMT due to dryness for safrinha (double crop) areas. It looks like it is going to be an early end to the growing season, although that won’t be known for several weeks
· T-storm Weather: Dry and hot weather prevail across most of Brazil’s safrinha corn through at least April 25
· Ethanol margins: $0.19 per gallon—down from $0.21 last week & below $0.60 last year. EIA report at 9:30 a.m. CDT
SOYBEANS/WHEAT
· November 2016 soybean futures closed at $9.96 on Tue.--highest settlement price for the contract since Jan. 7, 2015
· ATI Research: Near-term U.S. soybean exports are expected to average 8-12 mbu per week
· Consultant: Argentina soybean crop estimated lowered 1.5 MMT to 59.0 MMT as heavy rain and flooding over the past two weeks have taken a toll on the crop in eastern areas of the country
· ATI Research: ATI Research: Near-term U.S. all wheat exports forecast to continue to range from 12-16 mbu per week
· T-storm Weather: After a few days of drying, additional rain affects now-wet U.S. HRW wheat starting early next week
ENERGY
· Lower: CLK16, -$0.84, $40.24; EBM, -$.67; EBM-CLM, +$1.71, +$0.14; RBK, -$.0132; NGK, +0.002; HOK, -$.0126
· EIA estimates: crude, +2.0 (API: +3.1); Gasoline, -1.5 (-1.0); Distillates, unchanged (-2.5)
· Cash ethanol markets were steady to higher on Tuesday: Chicago added 1 1/8; New York up 1 ½; Gulf steady; Tampa climbed 1; Dallas increased ¾; and LA was steady at $1.74 ½ per gallon
· Ethanol RINs gained: 2014’s added ¼ to 73 ½-74; 2015’s increased 3/8 to 73 ¾-74 ¼; and 2016’s up ¼ to 73 ½-74
· The May RBOB/May Ethanol inverse gave up $.0344/gallon yesterday, settling at -$.08210
LIVESTOCK/POULTRY     ;
· Choice boxed beef values were $2.20 lower on Tuesday, but at $222.68 are still $3.37 higher vs. last week
· Estimates for Friday’s USDA Cattle on Feed: Apr 1 on feed, 101.0%; Mar placements, 107.4%; Marketed in Mar 107.8%
· USDA mandatory pork carcass cutout value gained $1.04 Tue. at $80.56, which is the highest level since Oct. 28
· CME Lean Hog Index was $0.15 higher Tue. at $66.70. May futures increased $1.35 and are $9.50 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather