HIGHLIGHTS
· Market Trend: Corn, 1-2 Higher; Soybeans, 9-11 Higher; Wheat, 3-4 Higher
· World equity markets are mostly lower in overnight trading, marking time ahead of Friday’s U.S. payrolls release. The Nikkei managed a .2% gain while the Hang Seng and Shanghai ended .6% and .7% lower. All 3 major European bourses started off weaker with the DAX .3% in the red; the FTSE was down .4% and the CAC-40, off .6%. U.S. futures are following suit: Dow, 13 lower; S&P, down 2 ½ and the NAS, 6 points lower. Energy futures are mostly higher; the $ Index is up .072 at 80.78 and gold is up .03% at $1,244.90
· T-Storm Weather: It is most probable for a cluster of severe thunderstorms to focus from southeastern South Dakota / eastern Nebraska through the heart of the Corn Belt–especially near the Interstate-80 corridor today. A few thunderstorms follow within the Plains and southwest half of the Corn Belt and DeltaThursday-Friday, followed by larger-scale system that likely develops rain in the central Plains & Corn BeltSaturday-Sunday. A break in rain is plausible around Monday, but the pattern remains conducive to additional storm systems throughout next week. Temperatures average near and warmer than usual through mid-month
· July Corn Up $.0175 at $4.60; September Up $.0150 at $4.5550. Fund selling totaled 10 K yesterday
· July Soybeans Up $.11 at $14.9225; August Up $.0975 at $14.2425. Fund activity: sold 8 K SB;
· July Wheat Up $.04 at $6.1650; September Up $.0350 at $6.2650. The funds followed Monday’s 4 K sale with 6 on Tues
CORN/SORGHUM
· U.S. corn emergence progress for week ending June 8 was 83% in 2013 and the five-year average (2009-2013) is 90%; milo planting progress was 67% in 2013 with the five-year average at 72%
· ATI Research: U.S. corn exports to range from 35-40mbu/week the next month; 23-25 Gulf, 8-10 PNW and 4-6 Interior
· Ethanol margins more than double last year: $0.86 per gallon vs. $0.40 a year ago. EIA report out at9:30 AM CDT
· T-storm Weather: This week could be the wettest for the U.S. Midwest since at least the 2011 growing season
SOYBEANS/WHEAT
· U.S. soybean planting progress for week ending June 8 was 69% in 2013 & the five-year average (2009-2013) is 81%
· ATI Research: Near-term U.S. soybean meal exports are forecast to average 126 K MT per week, 5 below the average
· U.S. spring wheat planting progress for week end June 8 was 86% in 2013 & the five-year average (2009-2013) is 93%
· ATI Research: U.S. all wheat exports are forecast to average near 20mbu/week through June
· T-storm Weather: Rain this week could slow U.S. HRW wheat harvest in the south and potentially reduce quality
ENERGY
· Futures are mostly higher: QCLN14, +$0.62 at $103.29; QRBN, +$0.0014; QNGN, -$.003; andQHON, +$.0073
· Additional weakness was noted in cash ethanol markets on Tuesday: Chicago was off 7; Gulf lost 4; Dallas slid 3 ½; New York was down a nickel; Tampa eased 2 ½; and LA was a penny lower at $2.75 ½ per gallon
· EIA estimates (API): Crude, -0.1 mb (-1.4); gasoline, +0.3 (+0.8); distillates, +0.7 (-0.3)
· RINs mostly steady: 2012’s unch at 45 ½-46 ½; 2013’s steady at 46-47; and 2014’s were off slightly at 44 ¾-45 ¼
· The July RBOB/June ethanol spread popped back out $.0388 to $.6537/gallon
LIVESTOCK/POULTRY ; ;
· After falling $1.88 over previous three trading days, Choice boxed beef values firmed 23-cents yesterday
· Cash cattle markets are quiet with feedyards asking around $145, but no packer bids. Cattle traded last week at $144
· The USDA pork carcass cutout value firmed 37-cents yesterday and has gained $4.74 over the last three trading days
· The USDA’s Iowa/Minnesota average cash lean hog price gained 18-cents yesterday to $109.05
Sources: Bloomberg, Dow Jones, AP, T-storm Weather