HIGHLIGHTS
· Market Trend: Corn, Up 1/2-1; Soybeans, 5-6 Higher; Wheat, 2-3 Higher
· Yesterday’s World Bank cut in its global growth rate forecast appears to be having an impact on at least some overseas markets. Asia was decidedly weaker with the Nikkei down .64%; the Hang Seng lost .35% and Shanghai, .16% lower. Europe, however, is modestly higher: FTSE, +.10%; the DAX, +.01% and CAC-40, +.12%. Today’s focus in the U.S. will be on May retail sales and weekly unemployment data; ahead of those releases, major U.S. indices are .01% to .03% higher. Militants in Iraq are driving energy futures higher; June gold is up $4.90 and the $ Index is slightly weaker, -.008 at 80.895
· T-Storm Weather: A large area of upper-level high pressure in the desert southwest keeps most area near to warmer than usual through 10-14 days. Waves of energy flow along the northern edge of warmth and trigger thunderstorms, though the exact timing, location, and coverage of rain is untenable more than a few days ahead due to limitations of computer modeling. The low-level wind flow and wet soil moisture combine to significantly increase humidity levels, providing fuel for thunderstorms that do develop. Widespread coverage of near-and above-average rainfall results, especially in central and northern growing areas
· July Corn Up $.0050 at $4.4150; September Up $.0050 at $4.38. The funds sold a total of 10 K yesterday
· July Soybeans Up $.0675 at $14.5225; August Up $.0650 at $13.8925. The funds sold 7 K SB; 8 K SBM and 10 K SBO
· July Wheat Up $.0225 at $5.9150; September Up $.0225 at $6.0375. The funds unloaded 10 K worth of contracts on Wednesday
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CDT. Trade expects 10 to 20mbu old-crop corn, 2-10 new-crop
· ATI Research: USDA Supply/Demand report leaves 13/14 U.S. corn export forecast unchanged at 1.900Bbu despite more competition; e.g. more exports from Ukraine (+1.0 MMT), Brazil (+0.5) & S Africa (+0.5); Argentina lowered 0.5
· T-storm Weather: Pockets of excessive wetness plausible June 14-15 forward across central/northern U.S. corn areas
· Ethanol grind: 944 thou barrels per day for week end June 6—up 6 thou vs. last week and 6.8% vs. last year
SOYBEANS/WHEAT
· Export Sales: Trade expects -4 to +4mbu old-crop soybeans, 11-18 new-crop ; soymeal, 0-125 K MT old, 50-150 new; soyoil, 0-60 old, 0-10 new
· ATI Research: Supply/Demand report boosts 13/14 overseas soymeal demand 580 KMT; 14/15 growth up 0.5 MMT
· Export Sales: Trade expects 9-17mbu for 2014/15 all wheat
· KCBT July 2014 wheat futures traded to $7.03 ¼ Wednesday—the lowest price since March 11
· ATI Research: Supply/Demand report; more 14/15 export competition with Russia & EU up 0.5MMT, respectively
ENERGY
· Futures are higher: QCLN14, +$1.57 at $105.98; QRBN, +$0.0447; QNGN, +$.034; and QHON, +$.0514
· Downward trend continued in cash ethanol markets Wednesday: Chicago and Gulf declined 4; Dallas lost ½; New York slid 7 ½; Tampa down 4 ½; and LA was 6 lower at $2.48 per gallon
· RINs slightly weaker: 2012’s off ½ to 45 ½-47; 2013’s eased ¼ to 46 ½-47 ½; and 2014’s were ¾ lower at 45-46 ½
· The July RBOB/July ethanol spread rose $.0693 to $.8988 per gallon on Wednesday
LIVESTOCK/POULTRY    
· After increasing $1.65 over the previous two days, Choice boxed beef values eased 69-cents yesterday
· After increasing $1.02 on Tuesday, the USDA pork carcass cutout value fell $1.22 yesterday
· CME Lean Hog Index firmed $0.92 to $112.46. June futures up $0.675 to $115.975 and are $3.515 above the index
· Broiler egg set last week was up 0.9% from last year and average set over the last four weeks is 0.8% above last year
Sources: Bloomberg, Dow Jones, AP, T-storm Weather