HIGHLIGHTS
· Market Trend: Corn, CN Down $.0175; Soybeans, SN Up $.0275; Wheat, WN, Down $.0625; KWN, Down $.0750
· Asia closed lower overnight—Greece and worries of a Federal Reserve rate hike within the next year, suggests Yellen. Shanghai gained .63%; the Nikkei, +.17% while the Hang Seng edged .60% lower. Europe seems to have shrugged off the Greek situation, for the moment; FTSE, +.55%; DAX, +.03%; CAC 40, +.49%. Pre-market indicators for Wall Street have DOW futures up 8; S&P, ¾’s of a point higher and the NAS, +2 ½. No economic reports out today, mostly the focus will be on a few earnings report. Externals: $ Index, +.053 at 97.835; gold, -$2.30 to $1,184.60 and energies are mixed with July crude up $.14 at $57.17/bl
· T-storm Weather: Two systems develop areas of rain and thunderstorms through Saturday-Sunday. Sharp warming follows in the Plains as upper-level high pressure bubbles, thereby shifting the main storm track further north. GFS output shows little to no rainfall across wettest HRW wheat areas of the central and southern Plains next week, which is needed since 24% of U.S. production received at least 90 day's worth of rain over the last 30 days. The warmer pattern is likely to interact with extreme soil moisture to pop thunderstorms, which is why we believe completely dry weather is unlikely in this region next week
· July Corn Down $.0175 at $3.5325; Sep Down $.02 at $3.60. Big sale day as funds begin the weak selling 9 K
· July SB Up $.0275 at $9.2525; Aug Up $.0275 at $9.16. Funds: sold 5 K SB; 2 SBM & bought 4 K SBO
· July Wheat Down $.0625 at $4.8725; Sep Down $.0750 at $4.9350. The funds sold 10 K yesterday
CORN/SORGHUM         ;
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· ATI Research: U.S. corn balance sheet; 14/15 carryout declines 26 mbu vs. last week to 1.899 bbu
· ATI Research: U.S. sorghum balance sheet; 14/15 carryout unchanged vs. last week to 22 mbu
· USDA Crop Progress pegs U.S. corn planting as of May 24 at 92% vs. 86% last year and the 5-year average of 88%. Corn emergence is 74% vs. 56% in 2014 and the avg. of 62%. Initial Good/Excellent crop condition ratings at 74%
· Sorghum planting: 41% vs. 45% last year and the 5-year avg. of 46%
· T-storm Weather: Wettest crops are forecast to stay wet or turner wetter through Saturday, while adequately-moist crops stay moist. Temperatures average slightly warmer than normal with above-average minimums in the 50s-60s
SOYBEANS/WHEAT
· ATI Research: Updated U.S. soybean balance sheet; 14/15 carryout decreases 20 mbu vs. last week to 331 mbu
· USDA Crop Progress pegs U.S. soybean planting as of May 24 at 61% vs. 55% last year and the 5-year average of 55%. Soybean emergence is estimated at 32% compared to 23% in 2014 and 25% for the 5-year average
· ATI Research: U.S. winter wheat crop model up 14 mbu to 1.461 bbu; HRW, 859; SRW, 407; and White, 196
· ATI Research: U.S. HRW wheat balance sheet, 14/15 carryout at 277 mbu; 15/16 carryout is forecast at 318 mbu
ENERGY
· Lower: CLN15, +$0.14 at $57.17; EBN, +$0.10; EBN-CLN, +5.70, +$.02, RBN, -$.0050; NGN, +$.033; HON, -$.0078
· Cash ethanol markets were mostly lower on Tuesday: Chicago down 1 6/7; New York up ¼; Gulf off 2 ¼; Dallas eased 1; Tampa slid 1 ½; and LA was 2 lower at $1.74 per gallon
· RINs steady to lower: 2013’s down 1/8 to 68 ¾-70 ½; 2014’s unch at 69 ½-71 ½; and 2015’s off ¼ to 68 ½-69
· The June RBOB/June Ethanol spread declined $.0466 to $.4323 per gallon on Tuesday
LIVESTOCK/POULTRY    
· Choice boxed beef values were 82-cents higher on Tuesday but are $1.85 compared to last week
· 5-Area Weekly Weighted Average Steer price decreased $0.88 last week to $159.92/cwt but is up $15.46 vs. last year
· USDA mandatory pork carcass cutout increased $1.04 on Tuesday and is up $2.31 vs. a week ago
· CME Lean Hog Index was down $0.21 at $82.91. June futures $0.55 lower at $83.175 but are $0.265 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather