HIGHLIGHTS
· Market Trend: Corn, Up 1-2; Soybeans, 11-12 Higher; Wheat, 3-4 Higher (WN)
· Asia closes mixed as ex/im data shows China’s economic recovery still a bit wobbly-good exports while domestic demand via imports remains sluggish. Hang Seng gains .27%; Nikkei falls .56%; Shanghai edges down .01%. Europe is decidedly weaker following the opening there—CAC 40 1.55% lower; the DAX, down 1.39% and the FTSE, off .74%. Futures don’t look particularly friendly for U.S. markets as well—pre-opening on the Dow is 156 points lower; S&P futures are 18 in the red and the NAS, off 32 ¾. The outside markets show energy futures mostly lower; the $ Index is .083 higher at 80.125; investors appearing to fleeing somewhat to gold which is up $19.60 at $1.343.90 per oz
· T-Storm Weather: A cool to unseasonably-cool pattern dominates for at least the next 10-14 days. The coolest weather occurs within Monday-Wednesday (July 14-16) when record-setting temperatures are plausible as minimums dip into the 40s and 50s across the northern third of the corn and soybean belt. Despite coolness next week, it provides no clue as to whether an early frost might occur in September – neither increasing nor decreasing the probability. Thunderstorm clusters form along the edge of coolness through the period, initially focusing on the heart of the corn and soybean belt from tonight into Monday
· July Corn Up $.02 at $4.06; September Up $.02 at $3.9325. Deliveries: Corn, 0; Ethanol, 0. Funds sell 10 K at mid-week
· July SB Up $.1125 at $13.4575 Aug SB Up $.1175 at $12.5825. Del’ys: 3 SB; 0 SBM, 535 SBO. Funds: sold 7 K SB; 3 K SBM, 7 K SBO
· Sep Wheat Up $.0350 at $5.5475; December Up $.0375 at $5.55. Deliveries, 18 SRW; 5 HRW. The funds sold 4 K
CORN/SORGHUM
· Export Sales to be released at 7:30 AM CDT. Trade expects 9 to 16mbu old-crop corn, 15-26 new-crop
· T-storm Weather: Coolness will eventually lose its grip on the Midwest later next week or weekend (within July 18-22), with thunderstorms returning to the Corn Belt after at least five days of mainly dry, cool, and sunny weather
· ATI Research: Corn planted in Cent Illinois on April 18 to reach black layer on or around Sept. 2 with normal temps
SOYBEANS/WHEAT
· Export Sales: Trade expects -4 to 4mbu old-crop soybeans, 11-18 new ; soymeal, 30-150 K MT old, 0-125 new; soyoil, 0-20 old, 0-10 new
· Private consultant notes 2014/15 soybean acreage in Brazil night expand 2-4% compared to 8.5% in 2013/14
· Export Sales: Trade expects 15-23mbu for all wheat
· U.S. winter harvest progress well behind normal in Ohio (20% vs. 43% for the 5-year avg.) and Michigan (1% vs. 13%)
ENERGY
· Futures are mostly lower: QCLQ14, -$.64 at $101.65; QRBQ, -$0.0050; QNGQ, +$.001; and QHOQ, -$.0022
· Cash ethanol markets were mixed on Wednesday: Chicago added 1 ½; Gulf eased ¾; Tampa up ½; Dallas was 3 lower; New York firmed by 2 ¾; and LA was ½ higher at $2.36 per gallon
· More weakness in RINs: 2012’s eased 2 ¼ to 49-52; 2013’s off 2 ¼ to 49-52; and 2014’s slipped 1 ½ to 49 ½-51 ½
· The August RBOB/August ethanol spread narrowed further, losing $.0492 to $.7837 per gallon
LIVESTOCK/POULTRY ;
· Choice boxed beef values gained 59-cents yesterday to a third daily record high of $250.57
· The pork carcass cutout value increased 54-cents yesterday to a second consecutive daily record high of $134.44
· CME Lean Hog Index gained $0.85 to $130.93. July future up $1.10 to $133.30 and are $2.37 above the index
· Broiler egg set last week was dn 0.1% from last year, but average set over the last four weeks is 0.3% above last year
Sources: Bloomberg, Dow Jones, AP, T-storm Weather