HIGHLIGHTS
· MARKET TREND—Firmer: CN: Up $.0150; SN: Up $.0125; WN: Up $.03; KWN: Up $.0325
· MACRO: Fed expected to hold the line on rates hikes; Beijing likely supporting Chinese equities; global markets higher. ASIA: Shanghai, up 1.6%; Nikkei, gains .38%; Hang Seng, rises .39%. EUROPE: Mid-day finds the FTSE up .81%; the DAX is 1.1% higher and the CAC is showing a 1.4% gain. WALL STREET: Pre-markets are higher--DOW futures, +47; S&P, +4 ¼; NAS, +10. EXTERNALS: The $ Index is .160 weaker at 94.88; gold is $4.50 lower at $1,282.10 and July crude is $.45 lower @ $48.04/barrel
· T-storm Weather: A heat wave affects the central and southern Plains over the next week as upper-level high pressure grows to encompass a massive area by early next week; significant rainfall is also unlikely in hottest areas, including areas in / near Nebraska and Kansas and potentially Missouri if thunderstorms expectedly stay northeast of these states through early today. The Corn Belt and Delta will also be hot at times, but heat will be tempered in eastern areas as a system in the Northeast causes a fetch of northeast winds to unfold; heat quickly returns late in the weekend
· CN, Up $.0150 @ $4.38; CZ, Up $.0075 @ $4.4725. The funds were again heavy buyers with another 15 K Tuesday
· SN, Up $.0125 @ $11.7075; SX, Up $.0075 @ $11.50. Funds: sold 7 K SB; 5 K SBM and 2 K SBO
· WN, Up $.03 @ $4.88; WU, Up $.0350 @ $5.0125. The funds sold 5 K on Tuesday
CORN/SORGHUM   ;  
· December 2016 corn futures closed at $4.46 ½ Tuesday—highest settlement price for the contract since July 8, 2014
· ATI Research: Near-term U.S. corn exports to range from 45-55 mbu per week vs. 41.0 for the same period last year
· Consultant: Brazil corn crop estimate lowered 1.0 MMT to 75.0 MMT. Season ending freezes were noted last week in southern Brazil, probably resulting in damage to the late developing corn in Parana and southern Mato Grosso do Sul
· T-storm Weather: Thunderstorms affect northeast half of central U.S. June 20-24; coverage/amounts highly uncertain
· Ethanol margins: $0.24 per gallon—up from 0.23 last week but well below $0.42 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: Expect near-term U.S. soybean exports to average around 5-9 mbu per week vs. 9.0 last year
· Consultant: Brazil soybean crop estimate lowered 1.5 MMT to 95.5 MMT due to poor end to the growing season, especially in northeastern production areas
· T-storm Weather: Most un-harvested soybean production areas in Argentina stay dry over the next several days
· ATI Research: Expect near-term U.S. all wheat exports to range from 13-17 mbu per week vs. 12.1 last year
· ATI Research: U.S. all winter wheat yield is estimated at a record 50.4 bpa
ENERGY
· Lower: CLN16, -$0.45, $48.04; EBQ, -$0.56; EBQ-CLN, +$1.25,-$0.09; RBN, -$.0339; NGN, -0.012; HON, -$.0210
· EIA estimates: crude, -2.1 (API: +1.2); Gasoline, -0.2 (+2.3); Distillates, unchanged (+3.7)
· Cash ethanol markets remained mixed on Tuesday: Chicago gained 1 5/8; New York firmed 1 ½; Gulf increased 3; Dallas steady; Tampa eased ½; and LA was unchanged at $1.82 per gallon
· Ethanol RINs higher: 2014’s up ¾ at 82 ¼-84 ¾; 2015’s gained 5/8 at 82 ¼-84 ¾; and 2016’s added 5/8 to 82-84 ½
· The July RBOB/July inverse continues to widen, up 5 ½ cents Tuesday to-.2137/gallon. Trading -$.2318 this am
LIVESTOCK/POULTRY    
·  Choice boxed beef values firmed 78-cents on Tuesday to $228.34, and are up $4.07 compared to last week
· August live cattle futures on Tue. traded down to $112.825—within $1.90 of the contract low—but settled up $0.65
· USDA mandatory pork carcass cutout value was 46-cents higher on Tue. at $87.10, and is up $1.21 vs. a week ago
· CME Lean Hog Index gained $0.33 Tue. to $81.10. July futures were $1.975 higher and are $6.975 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather