HIGHLIGHTS
· Market Trend: Corn, ½ to 1 Higher; Soybeans, 2-3 Higher; Wheat, 3-4 Higher
· Shanghai closed .5% lower; the Hang Seng lost .7% in overnight trading with the Nikkei nearly flat. However, early activity in Europe was to the plus side with gains of from .1 to .3% reported for the CAC 40, FTSE and DAX. U.S. futures are positive ahead of this morning’s jobs report—S&P, +2; Down, +30 and the NAS, +5.50. Energy futures are all positive; gold is $1.60 lowere at $1,251.40 on the July contract and the $ Index is .077 higher at 80.59
· T-Storm Weather: Storm systems parade across the central U.S. over the next 10-14 days. Each system triggers one or more thunderstorm clusters, but pinpointing the timing, location, and coverage of each cluster is untenable due to extremely-complex atmospheric dynamics that cannot be accurately modeled with computers far in advance. The main point is that above-average rainfall occurs in most areas through the period – initially focusing on the western and southern third to half of the central U.S. through Sunday, then across the northern third to half next week
· July Corn Up $.0050 at $4.4950; September Up $.01 at $4.4525. The funds sold 10 K on a favorable weather outlook
· July Soybeans Up $.0225 at $14.6275; August Up $.0275 at $14.03. The funds sold 10 K SB; 6 K SBM and 4 K SBO
· July Wheat Up $.0375 at $6.0950; September Up $.0350 at $6.1975. The funds sold 5 K
CORN/SORGHUM
· July 2014 corn futures traded down to $4.48 ½ on Thursday, which is the lowest price since February 14
· ATI Research: U.S. new-crop corn export sales demand continues to be a bit sluggish. A “typical” sales week at this time of the growing season is around 5-6mbu. but Thursday’s report was only 772,000 bushels for week end May 29
· USDA is currently surveying producers for June 30 Acreage report, which will update 2014 plantings for all crops
· T-storm Weather: Total of 91% of U.S. corn production received near- or above-average rainfall over the last 30 days
SOYBEANS/WHEAT
· November 2014 soybean futures traded down to $12.01 ¼ on Thursday, which is the lowest price since April 7
· ATI Research: U.S. new-crop soybean meal export demand continues at a record pace. As of May 29, total sales for 14/15 were 1.98 MMT with 1.11 of that on the books to Unknown destinations
· T-storm Weather: Total of 91% of U.S. soybean production received near- or above-average rainfall the last 30 days
· Chicago July 2014 wheat futures traded down to $6.05 on Thursday, which is the lowest price sinceFebruary 26
· ATI Research: U.S. wheat export sales demand mostly routine; unshipped sales 227mbu vs. 5-year avg. of 219 million
· T-storm Weather: Total of 79% of U.S. spring wheat production received near- or above-average rain the last 30 days
ENERGY
· Futures are higher: QCLN14, +$0.22 at $102.70; QRBN, +$0.0069; QNGN, +$.016; and QHON, +$.0073
· Cash ethanol markets remained mostly on the defensive Thursday: Chicago was off 1; Gulf edged up a penny; Dallas tumbled 7; New York and Tampa slipped 2 ½; and LA was 7 ½ lower at $2.58 ½ per gallon
· RINs steady to firmer: 2012’s up 2 ¼ to 43 ½-44 ½; 2013’s up 1 ¾ at 45-47 ½; and 2014’s unchanged at 43-44
· The July RBOB/July ethanol spread gained $.0381, to .8513/gallon
LIVESTOCK/POULTRY ; ;
· Choice boxed beef values fell $1.12 yesterday and have declined $1.67 over the last two days
· Cash cattle markets are quiet with feedyards asking $145 while packer bid $142. Cattle traded last week at $144
· After increasing $5.30 during the previous four trading days, the USDA pork carcass cutout value fell $1.01 yesterday
· The USDA’s Iowa/Minnesota average cash lean hog price gained $1.25 yesterday to $111.31
Sources: Bloomberg, Dow Jones, AP, T-storm Weather