HIGHLIGHTS
· Market Trend: Corn, 2 Lower; Soybeans, 8-9 Higher; Wheat, 3 Higher
· Expectations for QI U.S. growth to be a negative .7% are outweighing an anticipated favorable unemployment claims report this morning, at least overseas. Global markets are mostly lower—Shanghai was .47% weaker; the Hang Seng lost .3% while the Nikkei managed a .07% gain. Europe is following the same pattern in early trading: both the DAX (-.09%) and the CAC 40 (-.09%) are down; the FTSE is a ¼% higher. U.S. stock futures are slightly higher: Dow, +11; S&P, +0.25 and NAS, +1.25. Gold is off $5.50/oz; the $ Index is .158 lower at 80.575 and energy futures are positive
· T-Storm Weather: Mild to unseasonably-mild weather drives U.S. weather through at least the first week of June, inducing periods of heat in the central / southern Plains. Widely scattered thunderstorms accompany mildness from the southern Corn Belt through the Delta over the next few days, but the main rainfall event begins Friday-Saturday in / adjacent the northern Plains and continues through Monday-Tuesday across the northern Corn Belt as several rounds of heavy thunderstorm unfold. The main storm track likely shifts further to the south later next week, bringing rainfall to other corn/soybean areas withinJune 4-6
· July Corn Down $.02 at $4.7025; September Down $.0250 at $4.6675. The funds were even yesterday
· July Soybeans Up $.0825 at $15.06; August Up $.0975 at $14.38. Fund activity: bought 3 K SB; 4 K SBM and sold 3 K SBO
· July Wheat Up $.0275 at $6.4150; September Up $.0250 at $6.53. The funds sold 3 K Tuesday
CORN/SORGHUM
· U.S. corn planting progress for week ending June 1 was 90% in 2013 and the five-year average (2009-2013) is 94%; milo planting progress was 51% in 2013 with the five-year average at 57%
· ATI Research: Look for U.S. corn exports to avg. 44mbu/week the next month; 25-28 Gulf, 10-12 PNW and 5-6 Interior
· Ethanol margins remain well above last year: $0.91 per gallon vs. $0.31 in 2013. EIA report out today at 9:30 AM CDT
· T-storm Weather: Seasonable to wet conditions are forecast for most U.S. corn leading into the second week of June
SOYBEANS/WHEAT
· U.S. soybean planting progress for week ending June 1 was 55% in 2013 & the five-year average (2009-2013) is 70%
· ATI Research: Expect near-term U.S. soybean exports to average 4-5mbu/week; likely split of 3 via Gulf and 2 Interior
· U.S. spring wheat planting progress for week end June 1 was 80% in 2013 & the five-year average (2009-2013) is 88%
· ATI Research: U.S. all wheat exports are forecast to average 20-25mbu/week the next month
· T-storm Weather: Warmer than average temperatures through Monday stress U.S. wheat in central/southern Plains; maximums begin reaching the 90s-100s this weekend
ENERGY
· Futures are higher: QCLN14, +$0.22 at $102.94; QRBN, +$0.0077; QNGN, +$.006; and QHON, +$.0023
· A stronger trend was noted in cash ethanol markets on Wednesday: Chicago gained 4; Gulf climbed 8; Dallas added 2; New York was up nickel; Tampa was 6 higher; and LA was 6 ½ firmer at $2.72 per gallon
· EIA estimates (API): Crude, +0.1 mb (+3.5); gasoline, +0.2 (-1.4); distillates, +0.6 (+0.8)
· RINs were mixed: 2012’s up ½ at 46 ½-47 ½; 2013’s off ¼ to 47 ½-48 ½; and 2014’s gained ¼ to 46 ½-47 ½
· The June RBOB/June ethanol spread slipped another $.0223 to $.6549/gallon yesterday
LIVESTOCK/POULTRY  
· Choice boxed beef values increased $1.19 yesterday and have increased $9.23 over the last nine trading days
· Cash cattle are quiet with feedyards asking $145 while packers bid $143. Cattle traded last week at $143 to $144
· The USDA mandatory pork carcass cutout value gained $2.10 yesterday after falling $2.08 on Tuesday
· The USDA’s Iowa/Minnesota average cash lean hog price eased 37-cents yesterday to $108.18
Sources: Bloomberg, Dow Jones, AP, T-storm Weather