HIGHLIGHTS
· MARKET TREND: CORN: CU, Up 3; SOYBEANS: SU, Up 6 ½; WHEAT: WU, Down ½; KWU: Down ½
· The Yuan is stabilizing and Greece appears closer to receiving its 3rd financial bail-out of some $29 billion. Sluggish April-June economic growth in Japan boosts optimism for a fresh stimulus there. Asia: Nikkei, +.49%; Shanghai, +.73%; Hang Seng, -.74%. European markets: FTSE, -.10%; CAC 40, +.45%; DAX, +.30. U.S. futures are lower: DOW, -8; NAS, -1.50; S&P, -2.25. Outside markets: energy is mostly lower with Oct crude 40 cents or so lower; the $ Index is up .197 at 96.73; gold is $3.90 higher at $1,116.80
· T-storm Weather: The eastern Corn Belt was wetter-than-expected over the weekend as scattered 0.50”-1.00” amounts affected parts of Indiana, Michigan and Ohio. A strong cool front passed today resulting in much below-normal temps across a large area Monday-Thursday. The front helps scattered thunderstorms to affect much of the Corn Belt and Delta today; 0.25”-0.50” amounts are most common. The main event follows Tuesday-Thursday as a large-scale system moves across the central U.S. Widespread rainfall of 1.00-2.00” is likely; wettest across the northwest half of the Corn Belt, where areas of 3.00” are possible
· Sep Corn Up $.03 at $3.67; Dec Up $.03 at $3.7850. The funds sold 2 K to close out the week on Friday
· Sep SB Up $.0650 at $9.3175; Nov Up $.0550 at $9.22. Fund selling on Friday was 5 K; SBM, 6 K and even on SBO
· Sep Wheat Down $.0050 at $5.06; Dec Down $.0075 at $5.11. The funds bought 3 K on Friday
CORN/SORGHUM         ;
· USDA Crop Progress: Good/Excellent crop condition ratings for U.S. corn could be steady to one point lower vs. last week’s 70%. Ratings for same week last year were 72%. The 5-year average for corn dough is approximately 66%
· T-storm Weather—Warmer pattern for central U.S. starts Fri. & continues next week; sustained heat does not occur
· December 2015 corn futures closed at $3.75 ½ Friday; one year ago, the December 2014 contract settled at $3.77
· Export Inspections released at 10 AM CDT; Corn, 66.6 needed; 31.7 last week. Milo—6.4 needed; 8.2 last week
SOYBEANS/WHEAT
· USDA Crop Progress: Good/Excellent crop condition ratings for U.S. soybeans could be steady to one point lower vs. last week’s 63%. Ratings for same week last year were 71%. The 5-year avg. for soybeans setting pods is approx. 79%
· T-storm Weather: Approximately 90% of U.S. soybean production could receive at least 0.75” of rain over the next 5 days. If an area is to receive less than 0.75”, it would most likely be from northern Missouri through northern Illinois
· Export Inspections released at 10 AM CDT; Soybeans, 8.1 needed; 5.6 last week
· USDA Crop Progress: U.S. spring wheat harvest est. at 40-45% vs. approx. 15% last year & approx. 31% for 5-year avg.
· Export Inspections released at 10 AM CST; Wheat, 18.9 needed; 13.4 last week
ENERGY
· Mostly lower: CLV15, -0.37, $42.74; EBV,+$0.21; EBV-CLV, $6.65, +$.58, RBV, -$.0088; NGV, -$.040; HOV, +$.0067
· A steady to firmer trend was noted in cash ethanol markets on Friday: Chicago up 5/8; New York gained 3; Gulf added 2; Dallas and Tampa climbed ½; and LA was steady at $1.68 per gallon
· Ethanol RINs were steady to higher: 2013’s unch at 38-39 ½; 2014’s added ½ at 39 ½-41 ½; & 2015’s up 3/8 at 39-39 ¼
· The Sep RBOB/Sep Ethanol spread ended the week at $.2169/gallon, tignhtening $.0392
LIVESTOCK/POULTRY ;
·; Choice boxed beef values declined 37-cents on Friday, but at $244.72 are still up $8.38 compared to last week
· August live cattle futures closed at $148.45 on Friday, down $1.125 vs. a week ago
· On Friday, USDA mandatory pork carcass cutout was up 60-cents, but at $88.85 is 31-cents lower vs. the prior week
· CME Lean Hog Index $0.08 higher at $78.53. October futures up $0.275 at $65.325 but are $13.205 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather