HIGHLIGHTS
· MARKET TREND—Higher: CN: Up $.0225; SN: Up $.06; WN: Up $.0150; KWN: Up $.05
· MACRO: Global equities mostly stable; Deutsche Bank AG & Santander SA fail Fed’s stress tests. UK’s FTSE back to pre-Brexit levels. ASIA: Nikkei, +.06%; Shanghai, -.07%; Hang Seng, +1.75% . EUROPE: mid-day finds DAX, +.24%; FTSE, +.45%; CAC, +.71%. WALL STREET: Pre-market indicators—DOW, +48; S&P, +5 ½; NAS, +9 ¼. OUTSIDE MARKETS: The $ Index is off ¼ of a point at 95.565; July gold futures are $6.50 lower at $1,317.40 and August crude is down $.47. Deliveries: Corn, 176; SB, 595; SBO, 1,853; HRW, 919; SRW, 391
· T-storm Weather: Some showers and thunderstorms affect the U.S. Corn Belt when a cool front passes today-Friday, but a couple better-organized thunderstorms occur in the central Plains. Temperatures remain cool into the weekend. Several heavy thunderstorm clusters develop within Friday-Monday(especially Saturday-Sunday). Heavy rainfall of 1.25" to 2.75" is shifted further to the north, including ~40% of U.S. corn and soybean production
· CN, Up $.0175 @ $3.7450; CZ, Up $.0125 @ $3.79. Funds: sold 25 K
· SN, Up $.060 @ $11.5050; SX, Up $.0650 @ $11.19. Funds: sold 8 K SB, 3 K sbo; bot, 3 K SM. July crush, +13 ¼, $.68 ¼; LY: $1.13
· WN, Up $.0150 @ $4.31; WU, Up $.0150 @ $4.46. The funds sold 8 K yesterday
CORN/SORGHUM        
· December 2016 corn futures closed at $3.83 on Wed.—down $0.65 ¾ v. June 17 & the lowest settlement since May 9
· USDA reports (11:00 AM CDT): Trade est. U.S. corn acres at 92.8 mil (93.6 in March); June 1 corn stocks est. 4.520 bbu
· Export Sales to be released at 7:30 AM CDT. Trade expects 28-39 mbu for 15/16 corn
· T-storm Weather: Hot weather impacts the U.S. Corn Belt next week as maximums surge into the 90s across a large area. The setup appears conducive to near-normal rain for the region over July 5-11 with lesser amounts elsewhere
· Consultant: Argentina corn crop estimate increased 2.0 MMT to 27.0 MMT due to a reported increase in corn acreage
· Ethanol grind: 1,003,000 barrels/day for week end June 24—up 4.3% vs. last week and 3.6% higher vs. last year
SOYBEANS/WHEAT
· June 30 USDA reports: Trade pegging U.S. soybean acre at 83.9 mil (82.2 in March); June 1 bean stocks est. 0.831 bbu
· Export Sales report. Trade expects 18-29 mbu for 15/16 soybeans; soymeal, 75-125 K MT; and soyoil, 40-60 K MT
· Consultant: Some optimism in Argentina that the soybean crop may end up being a little better than expected
· June 30 USDA reports: Trade pegging U.S. wheat acres at 49.7 mil (49.6 in March); June 1 wheat stocks est. 0.983 bbu
· Chicago July 2016 wheat futures recorded a new contract low settlement price of $4.29 ½ on Wednesday
· Export Sales report. Trade expects 11-22 mbu for 16/17 all wheat
ENERGY
· Up slightly: CLQ16, -$0.47, $49.41; EBQ, -$0.39; EBQ-CLQ, $0.80,+$.07; RBQ, +$.0003; NGQ, +0.008; HOQ, -$.0143
· Cash ethanol markets were slightly weaker on Wednesday: Chicago down 1 ¾; New York declined 3/8; Gulf and Tampa off 2 ½; Dallas slipped 2; and LA was 1 lower at $1.77 ½ per gallon
· Ethanol RINs up sharply: 2014’s gained 4 to 89 ¼-94 ½; 2015’s firmed 3 5/8 to 89 ¼-94 ¼; 2016’s added 3 5/8 to 89-94
· The July RBOB/July ethanol inverse eased $.0228 yesterday to -$.07520
LIVESTOCK/POULTRY     
· Choice boxed beef values increased 53-cents on Wednesday to $208.57, but are still $8.51 lower vs. to a week ago
· Cash cattle trading was extremely light on Wed. with asking prices of $120 in the South and $190 to $192 in the North
· USDA mandatory pork carcass cutout value was $1.78 lower on Wednesday, was is still 62-cents firmer vs. last week
· CME Lean Hog Index up $0.17 on Wednesday to $85.03. July futures were $0.05 lower and are $1.93 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather