HIGHLIGHTS
· Market Trend: Corn, Down 1-2; Soybeans, Down 2-4; Wheat, Mixed
· Disappointing U.S. consumer spending in the month of May weighed on Asian sentiment overnight as the Nikkei fell 1.39%. Slowing growth in profits from China’s industrial sector at 8.9% in May, the slowest pace so far this year caused limited pressure on Shanghai which was off .11%. The Hang Seng managed to close .10% higher. Europe however, is higher with the FTSE, DAX and CAC 40 all posting modest gains of .01 to .12% in early trading. U.S. markets will be watching June’s U of MI consumer confidence index with Dow and S&P futures both .1% lower ahead of the opening. Outside markets find energy futures all higher; the $ Index is off .034 at 80.245 and gold is $1.40 weaker at $1,315.00/oz
· T-Storm Weather: A large system approaches and passes the central U.S. through Monday-Tuesday. Widespread rainfall results with wettest weather centered on northern areas of the Plains and adjacent areas of the Corn Belt. The best chance for widespread and unneeded rainfall of 1.00”–3.00” is Saturday-Sunday in Iowa and Minnesota, and includes the potential for severe thunderstorm clusters. A sharply cooler and drier pattern follows for much of next week. A warmer pattern develops July 6-7 forward, but remains conducive to new thunderstorms as energy & humidity interact as a strong cool front clears the region
· July Corn Down $.0175 at $4.41; September Down $.0125 at $4.3775. The funds bought a total of 3 K on Thursday
· July Soybeans Down $.04 at $14.33; August Down $.0250 at $13.7925. Funds: bought 8 K SB; 6 K SBM and 1 K SBO
· July Wheat Down $.0350 at $5.7875; September Up $.0150 at $5.8625. The funds bought 1 K in yesterday’s trading
CORN/SORGHUM
· T-storm Weather: June already unofficially ranks #7 wettest since 1895 across the corn and soybean belt; and another 1.00” through Monday would cause it to rank #1 wettest in at least 120 years
· ATI Research: U.S. old-crop corn export sales in the latest week of 12.7 were below the 4-week avg. of 16.7. Total sales for 14/15—including 9.1mbu in the latest week—are 134 million bushels vs. 203 last year and 233 in 2012
· December 2014 corn futures settled $4.43 ¼ Thurs.; December 2013 futures closed at $5.44 on same date in 2013
SOYBEANS/WHEAT
· ATI Research: U.S. old-crop soybean export sales were 11.7mbu, which represented the highest total since the end of February. Total sales for 14/15—including 16.8mbu in the latest week—are 396mbu vs. 443 last year & 455 in 2012
· T-storm Weather: Total of 20% of U.S. soybean production is unusually wet because it received at least twice its average rainfall over the last 30 days
· ATI Research: Despite lower price, U.S. wheat export sales are routine; unshipped book, 214mbu v. 5-year avg. of 195
· T-storm Weather: Slightly below-normal rain forecast for northern Kansas wheat through Monday, July 1
ENERGY
· Futures are higher with QCLQ14, +$.06 at $105.91; QRBQ, +$0.0133; QNGQ, +$.020; and QHOQ, +$.0042
· Stronger tone in cash ethanol markets on Thursday: Chicago, Tampa and Dallas all gained 1; Gulf up 3; New York jumped 9; and LA firmed 8 to $2.47 ½ per gallon
· RINs posted slight gains: 2012’s up ¾ to 52-55; 2013’s added 1 to 53-55; and 2014’s climbed 1 ¼ to 53-54 ½
· The July RBOB/July ethanol spread slipped $.0571 to $0.9626/gallon on Thursday
LIVESTOCK/POULTRY    
·   Choice boxed beef values firmed 49-cents yesterday for a 2nd daily record high of $245.01
· After setting a new record high on Wed. The USDA pork carcass cutout value fell $1.21 yesterday
· CME Lean Hog Index gained $1.53 to $124.65. July future up $0.55 to $129.85, but are $5.20 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather