HIGHLIGHTS
· Market Trend: Corn, 2-3 Lower; Soybeans, ¾ to 4 Lower; Wheat, 5-6 Lower
· With limited data for the market, Asian stocks were called “muted” in overnight trading. The Nikkei lost .4%; the Hang Seng gave up ½% and the Shanghai Composite rose a like amount. Traders were content to await more direction on the Chinese “stimulus” policy” referenced over the weekend. Europe has definitely taken on a more positive tone this morning: the FTSE, DAX and CAC 40 are all up 1+% in early trading. The outside markets find gold up $4.30 at $1,315.50; energy futures are higher and the $ Index is up .076 at 80.475
· Mostly dry weather is forecast for U.S. hard red winter wheat during the next 7 days except for the chance of some light rain in the east on Wednesday. Temperatures are projected to be below- to much-below-normal today, near to above-normal Wednesday-Thursday, variable on Friday and above-normal over the weekend. For the Midwest, mostly dry weather is forecast for today and Wednesday. Light to moderate rain is forecast on Thursday (some snow in the North), and then generally dry Friday-Sunday. Temperatures below- to much-below-normal through Friday and the near to below-normal on Saturday. A trend to above-normal readings begins on Sunday
· May Corn Down $.0250 at $4.8750; July Down $.0275 at $4.9175. The funds started the week buying 10 K
· May SB Down $.0150 at $14.24; July Down $.0125 at $13.97500. The funds bought 8 K SB; 6 K SBM and sold 3 K SBO yesterday
· May Wheat Down $.0550 at $7.09; July Wheat Down $.0550 at $7.1125. Fund buying totaled 10 K on Monday
CORN/SORGHUM
· ATI Research: Updated balance sheet for 13/14 corn pegs carryout down 19mbu vs. last week to 1.437Bbu; 14/15 down a like amount to 2.001Bbu
· Export Inspections; Corn, 45.0mbu—marketing year high (34.6 needed); zero to China. Milo, 4.9 (3.3), China in for 4.9
· Private consultant leaves Brazil corn crop estimate unch at 68.5 MMT but could move higher. Argentina unch at 23.0
SOYBEANS/WHEAT
· ATI Research: Updated balance sheet for 13/14 soybeans pegs carryout up 2mbu vs. last week to 121mbu; 14/15 up a like amount to 389 million. Export forecast increased 12mbu to 1.580Bbu vs. USDA at 1.530
· Export Inspections: Soybeans, 26.9mbu (only 3.2 needed) with China taking 14.1
· Private consultant leaves Brazil and Argentina soybean crop estimates unchanged at 86.0 MMT & 54.0, respectively
· ATI Research: 13/14 HRS wheat carryout unch at 188mbu; 14/15 also unch at 208 million
· Export Inspections: Wheat, 19.3mbu (24.2 needed)
· HRW wheat crop ratings deteriorate further: Kansas: 33% Good/Excellent vs. 34% last week; Oklahoma, 17% vs. 18%
ENERGY
· Futures are higher with QCLK14, +$0.31 at $99.91; QRBK, +$0.0118; QNGK,+$.040 and QHOK, +$.0129
· Cash ethanol markets posted gains on Monday, some sharply higher: Chicago jumped 26 ½; Gulf gained 12; NY up 2 ½; Dallas climbed 18; Tampa was 9 firmer; and LA prices were 16 higher at $4.00 ½ per gallon
· RINs were firmer: 2012’s up 2 at 52-53; 2013’s were 1 ½ higher at 53-54; and 2014’s gained 1 ¼ to 50 ½-52 ½
· The April RBOB/ethanol went to an inverse with ETOH now a 9.71 cent/gallon premium
LIVESTOCK/POULTRY    
· After falling $3.92 over the previous two trading days, Choice boxed beef values gained 96-cents yesterday
· USDA 5-area weekly average steer price for last week was a record high $150.87, up 92-cents from the week before
· After setting new record highs 10 out of the last 11 days, the USDA pork carcass cutout eased 19-cents yesterday
· The USDA’s Iowa/Minnesota average cash lean hog price eased 10-cents yesterday to $127.88
Sources: Bloomberg, Dow Jones, AP, T-storm Weather, Global Ag