HIGHLIGHTS
· Market Trend: Corn, CN steady; Soybeans, SN down 2; WN, down 6-7; KWN, Down ¼
· Taking a page from a now retired ATI broker—“Rock N Roll”. Greece/creditors near possible deal—DOW futures, +147; S&P, +16 ¾; NAS, +39 ¼. In Asia, the Nikkei closed up .46%; the Hang Seng gained 1.09% but Shanghai suffers, sharply lower at -5.23%. Europe is more optimistic—mid-day finds the CAC 40 up 2.46%; the DAXis 2.08% higher and the FTSE, up 1.40%. External markets: $ Index is up a 1/3rd of a point to 96.00; gold is $.50 dearer at $1,172.30/oz and energies are weaker with CLQ down 86 cents
· T-storm Weather: A key weather system occurs next week and is probable to have an influence on temperatures for the following 7-10 days. We can see that if it moves east, the central U.S. turns very warm with heat in at least the central and southern Plains, while a cool pattern would occur in most areas if it moves southeast. This issue is unlikely to be resoved today, and make take until Friday or Saturday to have high confidence. Ether scenario is probable to produce at least near-average rain for a large area
· July Corn steady at $4.14; Sep Up $.01 at $4.23. Stocks report attracts the funds—buy 40 K. Dely: 1,100
· July SB Down $.02 at $10.5425; Aug Down $.0050 at $10.49. The funds: buy 25 K SB; 15 K SBM; 6 K SBO. Dely: SBO, 1,187
· Wheat Down $.0675 at $6.08; Sep Down $.0850 at $6.0725. Corn, overseas crop ideas spur fund buying—20 K. Dely: 47 HRW, 44
CORN/SORGHUM ;    
·   U.S. corn acreage at 88.9, near trade guess of 89.1 mil; June 1 corn stocks of 4.447 bbu WELL below trade’s 4.557 #
· Latter should add 50-100 mbu to USDA feed/residual estimate
· Or, last fall’s crop a bit over-stated?
· Private crop consultant: One area of concern for 2015 U.S. corn is shallow rooted crops resulting from excessive moisture, which could make them more susceptible to dry conditions later in the summer
· Ethanol margins: $0.21 per gallon--down vs. $0.31 last week and below $0.79 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· USDA puts U.S. soybean acreage at 85.1, trade was thinking 85.3 mil; so much for a large May negative residual as June 1 soybean stocks of 625 mbu are WELL short of the trade’s 679 mbu average estimate
· Private crop consultant: The inpact on the U.S. soybean crop of wet weather will include ponded and drowned-out spots, slow growth, delayed crop development and increased disease and insect pressure
· ATI Research: U.S. HRS wheat crop model unchanged at 532 mbu
· All wheat acreage came in at 56.1 versus trade at 55.7 mil; June 1 stocks of 753 exceed trade’s 712 mbu estimate
ENERGY
· Weaker: CLQ15, -0.86, $58.61; EBQ, -0.79; EBQ-CLQ, +4.22, +$.10, RBQ, -$.0235; NGQ, -$.036; HOQ, -$.0223
· EIA estimates: crude, -1.2 (API:+1.9); Gasoline, +0.1 (+0.3); Distillates, +1.1 (+0.3)
· Cash ethanol markets posted gains: the Gulf rose 2 ¾; Dallas was 2 higher; Chicago up 1 ¾; both NY and Tampa were 1 ½ higher and LA edged up ¾ of a cent to $1.7450 per gallon
· Ethanol RINs for 2013, 2014 and 2015 remained on a par, at 46 cents each; down 7/8’s of a cent from Monday
· The July RBOB/July Ethanol spread gained $.0113 to $.4776/gallon Tuesday
LIVESTOCK/POULTRY    
· Choice boxed beef values values fell 49-cents on Tuesday and are $1.40 lower vs. a week ago
· Cash cattle are quet with asking prices in the South near $150, but no packer bids reported
· On Tuesday, USDA mandatory pork carcass cutout fell $1.28 and at $80.44, is down $1.46 vs. last week
· CME Lean Hog Index down $0.32 at $77.32. July futures were $1.95 higher at $76.20, but are $1.12 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather