HIGHLIGHTS
· MARKET TREND-Higher: CK, Down $.05; SK, Down $.0150; WK, Up $.01; KWN, Down $.0050
· MACRO: Equity markets are mostly lower. ASIA: Nikkei is closed; Shanghai slipped .05%; the Hang Seng was .73% lower; the Kospi lost .49. EUROPE is weaker with the DAX and CAC 40 off .70-.75%; the FTSE is trading 1.12% lower.U.S. PRE-MARKETS: more weakness: DOW futures are 106 lower; the S&P 500 is pointing to a 14.25 lower start and the NAS is nearly 30 points in the red. EXTERNALS: Gold, $14 lower @ $1,276.70; the $ Index is a ¼ point higher @ 93.28 & June WTI is $.12-$.14 higher
· T-storm Weather: Coolness dominates the eastern Corn Belt and Delta over the next few days, while the Plains turn mild – especially in spring wheat areas of the northern Plains. Scattered rain dots the eastern Corn Belt today, but most areas stay dry through at least Friday. A large, disorganized system begins to crawl across the central U.S. Sat.-Sun driving U.S. weather next week. The setup is conducive to areas of rain and thunderstorms with 0.50" to 1.50" amounts remaining most probable – beginning within the western half of corn and soybeans Sun.-Mon. and further to the east around Tue.; wettest central and south
· CK, Down $.05 @ $3.7325; CN, Down $.0325 @ $3.7650. Heavy fund liquidation, 25 K. Deliveries, 220 Corn
· SK, Down $.0150 @ $10.20; SN, Down $.0625 @ $10.2375. Funds: Sold 6 K SB; 6 K SBM; 4 K SBO. Dely: SBO-1,329; SB-728
· WK, Up $.01 @ $4.5075; WN, Down $.0125 @ $4.6950. Funds sold 10 on Tuesday. Dely: 286 HRW; 514 SRW
CORN/SORGHUM          
· ATI Research: Bias is U.S. corn exports over the near term should average 50 mbu per week vs. last year’s 43 million
· Consultant: Brazil corn crop estimate lowered 1.0 MMT to 78.0 MMT due to ongoing adverse weather for safrinha (double crop) areas. Worst case scenario if weather remains poor would be additional reduction of 3.0 MMT to 75.0
· T-storm Weather: In Brazil, drought worsens over the next two weeks across the northern 55% of safrinha corn production. Conversely, multiple heavy rains affect the southern 33% of corn
· Ethanol margins: $0.15 per gallon—down from $0.19 last week & below $0.65 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: Near-term U.S. soybean exports are expected to average 10.3 mbu per week vs. last year’s 9.8 million
· Consultant: Argentina soybean crop estimated lowered 1.0 MMT to 56.0 MMT due to the impact of recent heavy rain and flooding. Worst case scenario if weather remains poor would be an additional reduction of 3.0 MMT to 53.0
· T-storm Weather: In Argentina soybean areas, cool and mainly dry weather dominate for the foreseeable future
· ATI Research: Near-term U.S. all wheat exports forecast to range from 13-17 mbu per week
· T-storm Weather: A notably warmer pattern begins late next week for U.S. HRW wheat with at least near-normal rain
ENERGY
· Mixed: CLM16, +$0.13, $43.78; EBN, +$.11; EBN-CLM, +$1.29, -$0.03; RBM, +$.0131; NGM, -0.012; HOM, +$.0072
· EIA estimates: crude, +1.2 (API: +1.3); Gasoline, -0.2 (-1.2); Distillates, unchanged (-2.6)
· A weaker trend was noted in cash ethanol markets on Tuesday: Chicago down 1 ½; New York eased 1 ¾; Gulf off 1 ¼; Tampa declined 2; Dallas slid 1; and LA was 1 lower at $1.69 per gallon
· Ethanol RINs firmer: 2014’s added ¾ to 74-74 ½; 2015’s gained 7/8 to 73 ¾-74 ½; and 2016’s up ¾ at 73 ¼-73 ¾
· The June RBOB/May Ethanol spread moved to a slight inverse at -$.0003/gallonyesterday  
LIVESTOCK/POULTRY    
·   Choice boxed beef values plummeted $3.83 on Tuesday, and at $205.94 are $12.63 lower compared to a week ago
· Tuesday’s weakness in choice boxed beef values was the largest one-day decline since Sept. 23, 2015
· USDA mandatory pork carcass cutout value was $1.52 lower on Tue. at $81.66 but is still up 23-cents vs. last week
· CME Lean Hog Index gained $0.66 on Tuesday to $71.77. May futures were up $0.05 and are $6.705 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather