HIGHLIGHTS
· Market Trend: Corn, Down 1-2; Soybeans, 25-26 Lower; Wheat, May is 4-5 Higher
· Overseas markets are not off to a good start—the Shanghai Composite fell 3.5%; the Nikkei was 2.6% lower and the Hang Seng dropped 1.6%. Losses attributed to lower Chinese commodity prices which are seen as more evidence the world’s 2nd largest economy is slowing. Fear of default escalating. Last year’s 7.7% growth figure was a 2-decade low. Europe is not faring much better—FTSE, -1%; DAX, -1.4%; CAC-40, -1.5%. U.S. futures auger for a weaker opening with the Dow, -46; S&P, -5.5 and the Nasdaq, -5.25. Gold is up $9.30; energy futures are lower and the $ Index is 79.775, up .040
· T-storm Weather: Cool fronts trigger thunderstorms as they sweep across Brazil / Paraguay and dissipate through 10 days, but upper-level high pressure limits coverage and amounts across Center-West and Southeast Brazil. The end result is that occasional thunderstorms focus on South Brazil and Paraguay where harvesting occasionally slows, though it keeps second-crop corn in Parana and Mato Grosso do Sul moist. To the south, the main event of the next week occurs Thursday-Friday when a round of unneeded thunderstorms slows corn and sunflower harvesting in Argentina, especially in central and northern areas
· Mar Corn Down $.0175 at $4.7625; May Steady at $4.8325. The funds bought 10 yesterday
· Mar SB Down $.2650 at $13.85; May Down $.2525 at $13.8750. Funds sold 4 K SB; sold 2 K SBM and were even on SBO
· Mar Wheat, NA; May Wheat Up $.0575 at $6.6475. Fund buying totaled 10 K on Tuesday
· Deliveries: 2 Corn; 44 SB; 0 Wheat; 0 SBM and 22 SBO; 0 ethanol
CORN/SORGHUM
· USDA surveying for March 31 Grain Stocks report; early trade guesses for corn near 7.150Bbu vs. 5.400 last year
· ATI Research: Near-term U.S. corn exports, 35-40mbu per week; 25-27, Miss River; 5-10, PNW; & 4-5 Interior/Others
· T-storm Weather: Multiple storm systems ride the edge of coolness through the U.S. Northern Plains, Corn Belt and Delta the next 2 weeks. This is a slight concern because it limits potential for early corn planting in southern Corn Belt
SOYBEANS/WHEAT
· T-storm Weather: Limited temperature stress on filling soybeans across Argentina expected over the next 7-10 days
· ATI Research: Near-term U.S. soybean exports should be down to sub-20mbu per week a month from now
· CBT March 2014 wheat futures settled at $6.63 ¼ Tuesday, which is the highest closing price since Dec. 3, 2013
· T-storm Weather: 100% of HRW wheat production in the Southern Plains was drier to sharply drier than usual over the last 60 days. Rain chances are not high across/near this region over the next 14 days
ENERGY
· Futures are lower; QCLJ14, -$1.35 at $98.68; QRBJ, -$0.0223; QNGJ, -$.004 and QHOJ, -$.0252
· EIA Petroleum Stocks Estimates (API): Crude, +2.0 mb (+2.6); Gasoline, -1.6 (-2.2); Distillates, -0.4 (-0.8)
· Cash ethanol prices continued to slide in most areas on Tuesday: Chicago up 3; Gulf and Dallas off 6; NY lost 10 ¾; Tampa slipped a dime; and LA prices were 7 ½ lower at $2.94 per gallon
· RINs were weaker: 2012’s down 1 ½ to 50-51 ½; 2013’s off 2 at 51-52 ½; and 2014’s were 2 lower at 49 ½-51
· The April RBOB/April ethanol spread was little change yesterday, settling at $.6840/gallon, gaining $.0016
LIVESTOCK/POULTRY  
· Choice boxed beef values gained $2.57 yesterday to a record high $241.47, passing the previous record from Jan. 22
· Cash cattle markets are quiet with feedyards asking $150, but no packer bids. Cattle traded last week at mostly $147
· The USDA pork carcass cutout value set a new record high for a third day yesterday gaining $2.91 to $116.46
· Lean hog futures set another new record high yesterday with nearby April settling at $117.10
Sources: Bloomberg, Dow Jones, AP, T-storm Weather