HIGHLIGHTS
· Market Trend: Corn, CN Down $.01; Soybeans, SN Down $.09; Wheat, WN, Down $.0125; KWN, Down $.01
· Shanghai closed up 4.72%, on ideas of further stimulus action as China factory activity fell for the 3rd straight month in May; the Hang Seng gained .63% while the Nikkei eked out a .03% gain. This optimism provided some impetus for Europe as the DAX is up .08% and the CAC 40, +.38%; mid-trade on the FTSE is .06% lower. Wall Street looks positive: DOW futures, +29; S&P, +1.75 and the NAS, up 6. Data releases include personal income/spending; the ISM’s mfg index for May; April construction spending. Energy is weaker wit July WTI off $.67; gold is $4.10 to the downside and the $ Index is up nearly a ½ point at 97.83
· T-storm Weather: Sharp warming begins today in the Plains and envelops all of the central U.S. by Tuesday-Wednesday. Warmth shifts the storm track northward, allowing drying to occur this week away from the northern Plains and most of the 36% of HRW wheat production that received at least 8.00" over the last 30 days. The storm track is most likely to shift slightly further to the south in the wake of northern Plains' rainfall by late this week or weekend (June 6), most likely leading to widespread coverage of near-average rainfall (with a continuation of near- to warmer-than-normal temperatures)
· July Corn Down $.01 at $3.5050; Sep Down $.01 at $3.5625. The funds sold 4 K on Friday
· July SB Down $.09 at $9.25; Aug Down $.0725 at $9.12. Funds: bought 3 K SB; even on SBM and bought 8 K SBO
· July Wheat Down $.0125 at $4.7575; Sep Down $.0150 at $4.8075. The funds sold 5 K to close out the week
CORN/SORGHUM     ; ;
· USDA Crop Progress: Estimates have U.S. corn emergence pegged at 85-90% vs. approx. 77% last year and the five-year average of approx. 79%. Good/Excellent crop condition ratings for corn could be up one point to 75%
· December 2015 corn futures closed at $3.68 on Fri.; one year ago, the December 2014 corn contract settled at $4.63
· Export Inspections released at 10 AM CDT; Corn, 43.4 needed; 39.6 last week. Milo—4.7 needed; 4.4 last week
· Commitment of Traders report: Non-Commercial long corn futures only positions increase 16,023 contracts
SOYBEANS/WHEAT
· November 2015 soybeans closed at $9.05 ¾ on Fri.; one year ago, November 2014 soybeans settled $12.44 ¼
· USDA Crop Progress: U.S. soybean planting est. at 72-77% vs. approx. 75% last year & 70% for the 5-year avg.
· Export Inspections released at 10 AM CDT; Soybeans, 5.6 needed; 10.7 last week
· Commitment of Traders report: Non-Commercial long soybean futures only positions decrease 948 contracts
· Export Inspections released at 10 AM CST; Wheat, 44.5 needed; 15.4 last week
· Commitment of Traders report: Non-Commercial long CBT wheat futures only positions decrease 5,277 contracts
ENERGY
· Lower: CLN15, $0.67 at $59.53; EBN, -$0.73; EBN-CLN, +5.17, -$.09, RBN, -$.0120; NGN, -$.001; HON, -$.0098
· A mixed tone continued in cash ethanol markets on Friday: Chicago down 1 1/8; New York steady; Gulf eased 1 ½; Dallas off ½; Tampa up ½; and LA was 1 ¼ higher at $1.68 per gallon
· Collapse in RINs continued: 2013’s off 7 ½ to 45-59; 2014’s dipped 7 ½ to 46-60; and 2015’s slipped 6 ½ to 45-59 ½
· The June RBOB/June Ethanol spread widened $.1127/gal to $.5528 on disappointment with the EPA announcement
LIVESTOCK/POULTRY ;
·; Choice boxed beef values plummeted $4.26 on Fri.—largest one-day decline of 2015—and are the lowest since May 1
· U.S. beef production for week end May 30 down 7.1% vs. prior week but up 0.1% vs. last year due to heavy weights
· On Friday, the USDA mandatory pork carcass cutout increased $2.02 and at $85.76, is 99-cents higher vs. last week
· CME Lean Hog Index was down $0.02 at $82.18. June futures down $0.775 at $83.825 but are $1.645 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather