HIGHLIGHTS
· MARKET TREND—Higher: CK, up $.0275; SK, up $.0225; WK, up $.0425; KWK, up $.0325
· MACRO—Optimism over the start of the 2nd quarter of economic activity has markets generally higher; ISM manufacturing index out this morning along with auto sales & construction spending. ASIA—Firmer: Nikkei, +0.39%; Shanghai, +0.62%; Hang Seng, +0.62%. EUROPE—Mostly lower: DAX, +0.38%; FTSE, -0.02%; CAC, -1.19%. Wall STREET-Futures are a little higher: DOW, 12; S&P, +0.75; NAS, +5.00. EXTERNALS: Sep $ Index, +0.207 @ 100.265; April Gold, -$2.40 @ $1,245; May Crude, $0.00 @ $50.60
· T-storm Weather: Two strong systems pass through Wed.-Thu., producing widespread rainfall of 1.50”-3.00” across the southeast half to two-thirds of the central U.S., thereby increasing wetness for HRW wheat in/near the central Plains, and breaking dryness across the Delta and southeast two-thirds of the Corn Belt. Corn and spring wheat areas of the northern Plains only receive light showers, while some HRW wheat in the southern Plains also receive minimal rainfall
· Corn: CK up $.0275 @ $3.67; CN up $.0275 @ $3.7450. The funds bought 8 K following the release of Friday’s report
· SB: up $.0225 @ $9.4825; SN up $.0225 @ $9.5925. Funds: sold 10B S, 8 SBM, 4 SBO. Board Crush: $.82, 0; LY; $.60
· Wheat: WK up $.0425 @ $4.3075; WN up $.0375 @ $4.4275. Fund buying was estimated at 5 K on Friday
CORN/SORGHUM
· ATI Research: USDA Grain Stocks report indicates Sep-Feb U.S. corn feed/residual use was up 3% vs. last year. However, to reach the annual USDA forecast, feed residual use in March-Aug must exceed last year’s total by 20%
· Export Inspections released at 10 AM CDT; Corn, 42.2 mbu needed; 61.3 last week. Milo—3.6 needed; 6.5 last week
· T-storm Weather: In South America, widespread rain of 2.00”-4.00” occurs over the next 10 days with highest totals in Argentina, southern Brazil and Paraguay—including some of the drier areas of safrinha (double crop) corn in Parana
· NWS forecast for month of April released on Fri. indicates above normal temps, normal precip for Midwest corn areas
SOYBEANS/WHEAT
· ATI Research: March 1 soybean stocks of 1.735 bbu implies Dec-Feb residual use of -67 mbu (add back), which is in contrast to +32 mbu last year. This suggests the potential for an eventual upward revision in the size of the 2016 crop
· Export Inspections released at 10 AM CDT; Soybeans, 14.1 mbu needed; 20.4 last week
· T-storm Weather: Heavy rain pounded parts of Argentina Sat.-Sun., but it was not widespread in key growing areas
· ATI Research: USDA Prospective Plantings pegs 2017 U.S. hard red spring acreage at 10.6 mi—down 3% vs. last year. Revisions to 2017 winter wheat acreage were an increase of 500,000 acres for HRW & a reduction of 150,00 for SRW
· Export Inspections released at 10 AM CDT: Wheat, 24.4 needed; 19.9 last week
ENERGY
· Mixed: CLK17, $0.00 @ $50.60; EBM, -$0.09 @ $52.59; EBM-QCLM, -.07; RBK, +$.0018; NGK, +$0.046; HOK, +$.0016
· Additional strength was noted in cash ethanol markets on Friday: Chicago climbed 2 7/8; New York up 1 ¾; Gulf and Dallas added 3; Tampa increased 2 ½; and LA was 4 higher at $1.79 per gallon
· Ethanol RINs were steady Fri.: 2015’s unch at 51-54; 2016’s unch at 52-54 ½; and 2017’s unch at 52 ½-54 ½
· The May RBOB/April ethanol spread eased $.0110 Friday to+$.08610/gallon, premium RBOB
LIVESTOCK/POULTRY  
·   Choice boxed beef values were $1.09 lower on Fri. at $214.12, and are down $7.50 compared to last week
· Light to moderate cash cattle trading developed Friday, with prices in the South at $128—$2 lower vs. prior week
· USDA mandatory pork carcass increased 320-cents on Friday to $74.87, but is still $3.10 lower vs. a week ago
· CME Lean Hog Index was $0.56 lower on Fri. at $68.30. April futures gained $0.05 but are still $2.625 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather