HIGHLIGHTS
· Market Trend: Corn, Steady; Soybeans, 4-6 Higher; Wheat, Steady
· Several U.S. firms reported solid earnings yesterday, easing concerns that equity prices are overly inflated—Apple, Microsoft among others. Home sales rose for the 3rd straight month, up 2.6% in June and the best showing in 8 months according to the National Association of Realtors. 2 out of 3 Asian markets closed higher overnight—Hang Seng, +.80%; Shanghai, +.14% with the Nikkei off .1%. Europe is off to a good start—FTSE, +.36%; CAC 40, +.49% and the DAX, +.67%. U.S. futures look favorable with the S&P at +3.75; the Dow, +29 and the NAS, +7. Energy futures are mostly higher; gold, +1.50 @ $1,307.90 and the $ Index, -.035
· T-Storm Weather: Large temperature fluctuations through Sunday will be followed by a one-week period of unusual coolness. Changing temperatures trigger thunderstorms in varying corn and soybean areas through Sunday, though higher coverage would be ideal since organized rainfall does not accompany coolness next week. That said, deep subsoil is moist, and a seasonably-milder (not hot) pattern within Aug. 4-8 likely helps thunderstorms return
· Sep Corn Unch at $3.6025; December Down $.0025 at $3.685. The funds sold a total of 5 KTuesday as yield ideas grow
· August SB Up $.0450 at $11.8850; Sep Up $.0575 at $10.9075. Funds sold 8 K SB; 3 K SBM and 2 K SBO; weather near-perfect?
· Sep Wheat Unch at $5.2450; December Unch at $5.4875. The funds sold 2 K, good #’s out of Russia, prices there ease
CORN/SORGHUM
· T-storm Weather: Thus far in July, the corn and soybean belt was 3-6 degrees cooler than usual, causing it to rank #2 coolest of the last 120 years (surpassed by 2009)
· The last time nearby corn futures ended the month closing below $3.75 was July, 2010
· ATI Research: U.S. corn exports projected to average 40mbu per week near-term, plus or minus 2mbu on either side
· Ethanol margins: $0.84 per gallon vs. $0.80 last week and well above $0.25 a year ago. EIA report at9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: U.S. soybean exports forecast to average 3mbu per week near-term vs. the 5-year avg. of 8.7 million
· USDA Crop Progress: U.S. soybean crop development is well above 2013; 19% setting pods vs. 7% last year
· Private crop consultant notes a lot U.S. soybeans remain shorter than normal and slower growing than normal
· Australia Bureau of Meteorology reports month-to-date rainfall is below average across most eastern wheat areas
· ATI Research: U.S. all wheat exports are forecast to average 15-20mbu per week short-term
ENERGY
· Futures are mostly higher: QCLU14, +$.05 at $102.44; QRBU, -$0.0027; QNGU, +$.003; andQHOUQ, +$.0100
· Cash ethanol markets continued to work lower: LA fell 5 ½ cents; the Gulf was off 1 ½; Tampa slipped 4; Dallas was down 2; NY was steady at $2.24; Chicago eased a penny, to $2.13 per gallon
· EIA estimates (API): Crude, -2.5 mb (-0.55); gasoline, +0.9 (+3.6); distillates, +1.9 (+2.5)
· RINs saw little change and remain with 2012’s at 51-52; 2013’s at 51-52; and 2014’s also at 51-52
· The August RBOB/August ethanol narrowed in $.0217 Tuesday, to $.7879 per gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values increased $2.28 yesterday to a record high $252.80
· Cash cattle are quiet with feedyards asking $158, but no packer bids. Cash cattle traded last week at $155 to $156
· The USDA pork carcass cutout value fell $1.00 yesterday and has declined $3.74 over the last two days
· CME Lean Hog Index down $0.59 to $132.57. August future up $2.475 to $127.575, but are $4.995 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather