HIGHLIGHTS
· MARKET TREND—Higher: CN, up $.0275; SN, up $.05; WN, up $.0625; KWN, up $.0950.
· MACRO—Market awaits conclusion of the two day Fed meeting, rate hike widely expected. ASIA—Mostly lower Nikkei, -0.08%; Shanghai, -0.74%; Hang Seng, +0.09%. EUROPE—Higher: DAX, +0.73%; FTSE, +0.46%; CAC, +0.80%. Wall Street-Futures are higher: DOW, +22; S&P, +1.50; NAS, +29.53. EXTERNALS: Sep $ Index, +.073 @ 96.750; June Gold, +$1.60 @ $1,268; Aug Crude, -$0.51 @ $46.16
· T-storm Weather: A series of fronts pass over Wed.-Sat. to trigger thunderstorms in the Corn Belt and Delta; 0.67" to 1.33" amounts. The U.S. turns cooler from north to south later this week and weekend, setting the stage for additional pockets of thunderstorms over Sat.-Wed. In the end, 1.00" to 2.50" of rain falls over the next 7 to 10 days with highest amounts in the eastern Corn Belt, lowest amounts in the western Corn, and likely lower amounts in much of Kansas and Nebraska
· Corn: CN up $.0275 @ $3.8375; CZ up $.0275 @ $4.0175. The funds were buyers, 6 K on Tuesday
· SB: SN up $.05 @ $9.3750; SX up $.0525 @ $9.4425. Funds: Bought 2 SB, 0 SBM, 1SBO. Board Crush: $.84, 0; LY; $0.87
· Wheat: WN up $.0625 @ $4.5125; WU up $.06 @ $4.6525. The funds bought 4 K yesterday
CORN/SORGHUM
· T-storm Weather: Several hints suggest a warmer/much-warmer period to begin June 24-25, starting in U.S. central & southern Plains, then extending east with time. Setup is conducive to some rain, especially in east, less-so in west
· Consultant: Brazil corn production estimate is increased 1.0 MMT to 94.0 MMT with a neutral to slightly higher bias
· ATI Research: The model puts near-term U.S. corn exports at 48.2 mbu per week for the upcoming 4-week period vs. 44.8 last week. Our bias is 40-45 per week, which compares to 54.0 last year and the 5-year seasonal average of 31.1
· Ethanol margins: $0.17 per gallon—down vs. $0.20 last week and below $0.40 in 2016. EIA report at 9:30 am CDT
SOYBEANS/WHEAT
· ATI Research: The 5-year avg. for U.S. soybean emergence increases approx. 11% from June 11-18 to 84%
· Consultant: Brazil soybean crop estimate is increased 2.0 MMT to a record 113.0 MMT with a neutral bias going forward. Exceptional yields in northeastern and far southern areas (last two regions to be harvested) were noted
· MGE July 2017 wheat futures traded $6.33 ¼ on Tuesday.—highest price for nearby MGE wheat since Jan. 6, 2015
· T-storm Weather: Light showers affect U.S. spring wheat today, especially north. After the system passes, temps turn seasonable to cool for 7-10 days; a few showers cannot be ruled out, but a lack of humidity suppresses coverage
ENERGY
· Lower: CLQ17, -$0.51 @ $46.16; EBQ, -$0.43 @ $48.29; EBQ-QCLQ, +.06; RBQ, -.0149; NGQ, -.031; HOQ, -.0078
· EIA Report Estimates (API): crude oil, -2.6 (+2.8); Gasoline, -0.7 (+1.8); Distillates, +0.6 (-1.5)
· Cash ethanol markets were mostly higher on Tuesday: Chicago up 1 3/8; New York, Tampa and Dallas added 2 ½; Gulf firmed 2 ¾; but LA was unchanged at $1.70 per gallon
· Ethanol RINs posted slight gains on Tuesday: 2016’s and 2017’s firmed 5/8 to 73 ½-75
· The July RBOB/June ethanol inverse increased $.0195 yesterday, to -$.06650/gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values fell $1.33 on Tuesday to $251.19 , but are still 74-cents higher compared to a week ago
· A few cash cattle sales occurred late Tuesday at $133 to $134 in the South and $215 to $217 in the North
· USDA mandatory pork carcass cutout value increased $2.17 on Tuesday to $94.58, and is $4.65 higher vs. last week
· CME Lean Hog Index gained $0.57 on Tue. to $81.16. June futures firmed $0.80 and are $1.615 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather