HIGHLIGHTS
· Market Trend: Corn, ¼ to ½ Lower; Soybeans, Up 8, led by SK; Wheat, Down 7
· An improvement in China’s April export numbers, +.9% YOY versus a 6.6% decline in March helped lift Asian markets overnight. The Nikkei gained .93%; Shanghai was .26% higher and the Hang Seng, +.42%. Yellen says the Fed will hold the line on interest rates until inflation reaches the 2% target rate. Europe is higher this morning with the FTSE, DAX and CAC-40 all up .4 to .6%. U.S. futures are higher as well: S&P, +0.5; the Dow, +19 and the Nasdaq, +.25. Gold is up nearly $3 at $1,291.90; energy futures are mostly lower and the $ Index is off 1/10 of a point at 79.25
· T-Storm Weather: A system combines with mildness to develop areas of rain and thunderstorms across the northern Plains, Corn Belt and Delta through Friday. Note that we are only forecasting thunderstorms along the eastern fringe of the HRW wheat belt – most rain focuses to the east as the system bypasses the region. Additional rainfall follows within Saturday-Tuesday as energy sweeps eastward – especially Saturday-Monday. Some rain may clip driest HRW wheat in the Plains Sunday, but primarily along the eastern fringe of the region. A cooler and drier pattern likely begins Monday-Tuesdayfor most growing areas
· May Corn Down $.0025 at $5.10; July Down $.0025 at $5.1350. The funds sold 5 K yesterday. Deliveries: 16
· May SB Up $.08 at $14.59; July Up $.0625 at $14.5250. Funds sold 6 K SB, 4 K SBM and 4 K SBO
· May Wheat Down $.0750 at $7.2225; July Down $.05 at $7.3275. The funds sold 2 K Wednesday
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CDT. Trade expects 20 to 32mbu old-crop corn, 4-12 new-crop
· Ethanol grind: 894 thou barrels per day for week end May 2—dn 4 thou vs. last week but up 6.0% vs. last year
· Friday’s WASDE report: Average trade guess for 2014 corn production is 13.736Bbu; range is 13.500-14.190
· ATI Research: U.S. corn planting progress increased 43% in one week last year (May 12-19). While rain the next few days may prevent a repeat of that amount of progress for the current week, a jump of 25-30% might be possible
SOYBEANS/WHEAT
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Export Sales: Trade expects -4 to +4mbu old-crop soybeans, 4-11 new-crop ; soymeal, 50-150 K MT old, 0-200 new; soyoil, 0-20 old, 0-10 new
· July/November 2014 soybean spread closed at $2.29 on Wed., the narrowest settlement level since March 28
· Soy complex deliveries: 143 SB; 6 SBM; 6 SBO; Wheat: 23 KC; 129 CHI
· Friday’s WASDE report: Average trade guess for 2014 soybean production is 3.542Bbu; range is 3.400-3.662
· Export Sales: Trade expects 4 to 11mbu old-crop wheat, 7-11 new-crop
· T-storm Weather: Widespread drying is needed for U.S. spring wheat planting because 92% of production is wetter than usual at the topsoil level
ENERGY
· Futures are mostly lower: QCLM14, -$0.30 at $100.49; QRBM, +$0.0016; QNGM, -$.010; andQHOM, -$.0111
· Cash ethanol markets rebounded on Wednesday: Chicago climbed 9; Gulf added 8; Dallas was up 7; New York firmed 6; Tamps advanced a nickel; and LA was 6 higher at $2.16 per gallon
· Mixed trend in RINs: 2012’s up ½ to 42-43; 2013’s gained ¼ to 43-44; while 2014’s slipped ¼ to 41-42
· The June RBOB/June ethanol spread lost $.0326 to $.8582/gallon
LIVESTOCK/POULTRY    
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Choice boxed beef values fell 73-cents yesterday and have declined $1.75 over the last two days
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Cash cattle markets are quiet with feedyards asking $148 while packers bid $144. Cattle traded LW at $146 to $147
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After falling $3.93 on Tuesday, the USDA mandatory pork carcass cutout value firmed 16-cents yesterday
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The USDA’s Iowa/Minnesota average cash lean hog price fell 98-cents yesterday to $113.15
Sources: Bloomberg, Dow Jones, AP, T-storm Weather