HIGHLIGHTS

·         Market Trend:  Corn, Up 2+;  Soybeans, rocketing 19 Higher;  Wheat, 3 Higher

·         Pace of China’s slowdown eases; May mfg index rises from 48.1 to 49.7, best showing in 5 months.  As expected, the Fed minutes suggests U.S. central bank is in no hurry to boost interest rates.  Shanghai closes .18% lower; the Hang Seng was little changed, +.01% while the Nikkei performed well, up 2.11%.  2 out of 3 Europe bourses are higher:  FTSE, +.07%; DAX, +.10% with the France’s CAC 40 off .18%.  U.S. futures look positive for the opening:  Dow, +18; S&+, +1.25; NAS, +3.75.  Gold is $9 higher at $1,297; energy futures are mostly weaker and the $ Index is at 80.275, +.007

·         No changes to the T-Storm outlook as temperatures average warmer to much warmer than usual the next 10-14 days which should encourage plant growth. Some showers can be expected from the C Plains to the S Corn Belt through today, but significant amounts are not likely as drying in the wettest northern stretches of the Plains continues. A large upper-level system will slowly move across the C/S Plains between today and Monday bringing between 1 ¼ to 2 ¾” of precip.  Scattered t-storms also return to wetter areas of the northern Plains and northwest Corn Belt Sat-Mon, limiting planting activity. The large system will drift across the Corn Belt/Delta with 1-2”probable for the S Corn Belt and Delta.

·         July Corn Up $.0225 at $4.7675; September Up $.0150 at $4.74.   The funds were even inWednesday trade

·         July Soybeans Up $.1950 at $14.2475; August Up $.1975 at $14.5050.  Funds:  bought 8 K SB;8 K SBM and 3 K SBO

·         July Wheat Up $.03 at $6.6725; September Up $.0375 at $6.79.  The funds sold 3 K yesterday

 

CORN/SORGHUM

·         Export Sales:  old crop expected at 12.8-20.7 versus 9.8 needed.  N/C: 2-8 mb. Milo needs to average 1.2/week

·         Estimated grain ground for ethanol output ros 300 K bu to 101.7 mbu; puts the industry on track to use approximately 5.04 bbu of corn, 10 million below the USDA but margins and limited imports to push demand higher still

 

·         SOYBEANS/WHEAT

·     &​nbsp;   Export Sales: Soybeans expected at -6 to +5 with -3/wk needed; SBM seen at 25-150 for old crop versus 43 needed; SBO expected at -020

·         Export Sales:  Wheat expected at 2-9 for old crop (need 11) and new crop at 6-11

·         Chinese crush margins improving, but still slightly negative

·         SN14 closes above $15 per bushel, highest close since $15.12 ¾ on April 30^th

·         $6 64 ¼ close on WN14 lowest settlement since $6.68 ¼ on April 11^th

ENERGY

·         Futures are mostly lower:  QCLN14, -$0.05 at $104.02; QRBN, -$0.0001; QNGN, +$.009; andQHON, -$.0026

·         With the exception of the Gulf, off a penny, cash ethanol markets were firmer with Tampa up 7 ½; LA gained 4 ¾; Chicago was 5 higher at $2.30 1/2; Dallas picked up 2 and NY, 1 ½

·         Ethanol inventories declined 312 K to 16.99 mb in the latest week; yr to yr surplus slips to +808 K barrels

·         RINs were lower: 2012’s were ½ lower to 46 ½-47 ½;  2013’s stayed steady, 47 ½-49; 2014’s lost 1 to 46-47

·         The July RBOB/July ethanol spread lost a ¼ cent to $.7968 per gallon

LIVESTOCK/POULTRY                    &nbs​p;                        ​;              

·   &nbs​p;     Live cattle closed mixed on Wednesday with weakness in the near-bys a reflection of demand worries

·         Choice boxed beef cut-out values rose $.93 gained $3.01 to $231.16; Selects, up $1.06 to $220.09

·         Feeder cattle posted gains of 15 to 60 in mid-week futures trading

·         Estimated pork packer margins for vertically integrated plants were off $4.22 to $51.79 yesterday

·         The 19-state weekly Eggs Set report revealed a .8% gain over LW; Chicks Placed were off 1%

Sources: Bloomberg, Dow Jones, AP, T-storm Weather