HIGHLIGHTS
· MARKET TREND-Lower: CN: Down $.0250; SN: Down $.0675; WN: Down $.0475; KWN: Down $.3
· MACRO: IF, economic conditions keep improving, a Fed Reserve rate hike is in the cards. Such an insightful observation has apparently caught global markets by surprise, especially Europe. ASIA: The Hang Seng closed down 0.67%; Shanghai eased .01% while the Nikke managed a “hefty” .01% gain. EUROPE:Lower—the CAC 40 is off .90%; the DAX, down 1.3% and the FTSE, 1.37% in the red. WALL STREET: Likewise: DOW futures, down 61; NAS, off 15 ¼; S&P, down 6 ½. EXTERNALS: The $ Index, +.177; @ 95.30; Gold is down hard, off $19.50 @ $1,256.20 and June WTI is $.90 lower $47.30
· T-storm Weather: Much of the central U.S. remains cool through Friday. Sharp warming unfolds from west to east over Sat.-Tue., leading to widespread maximums in the 70s-80s in all areas from early next week forward. Rain focuses along the southern edge of coolness today-Friday when a strong wave passes, but primarily stays south of the Corn Belt. Dry weather occurs elsewhere through at least Sunday, followed by a gradually uptick in thunderstorm coverage next week. Widespread coverage of at least near-normal rainfall is expected with best odds for above-normal rainfall with westward extent
· CN, Down $.0275 @ $3.9675; CZ, Down $.0325 @ $4.0275. The funds were again sizable buyers, 8 K at mid-week
· SN, Down $.0650 @ $10.6875; SX, Down$.06 @ $10.5150. Funds: even on SB; bought 5 K SBM and sold 3 K SBO
· WN, Down $.0475 @ $4.7525; WU, Down $.0475 @ $4.8525. The funds sold 3 K yesterday
CORN/SORGHUM       ;
· ; Export Sales to be released at 7:30 AM CDT. Trade expects 35-51 mbu for 15/16 corn
· ATI Research: U.S. corn planting progress for week end May 22 was 90% last year, while the 5-year avg. is approx. 85%
· T-storm Weather: Most drought-stricken northern Brazil safrinha (double crop) corn receives less to much-less than 0.50” of rain the next 10-14 days (including ~60% of prod.), while maximum temps generally reach mid-80s to mid-90s
· Consultant: Argentina corn production estimate is 25.0 MMT, which is on the low side of estimates; e.g. USDA at 27.0. Bias is some damage was caused by flooding in April but won’t be known until more of the corn is harvested
· Ethanol grind: 948,000 barrels/day for week end May 13—down 1.5% vs. last week and 1.0% lower vs. last year
SOYBEANS/WHEAT
· Export Sales report. Trade expects 11-18 mbu for 15/16 soybeans; soymeal, 50-250 K MT; and soyoil,6 0-120 K MT
· ATI Research: U.S. soybean planting progress for week end May 22 was 56% last year; the 5-year avg. is approx. 50%
· T-storm Weather: Unseasonably cool weather continues across Argentina soybean areas through 10 days. A few showers continue in southern areas but organized rainfall is not foreseen in areas that experienced flooding in April
· Export Sales report. Trade expects 0-9 mbu for 15/16 all wheat and 7-15 mbu for 16/17
· T-storm Weather: Little or no rain forecast through Sunday for U.S. HRW wheat from northern Oklahoma northward
ENERGY
· Weaker: CLM16, -$0.90, $47.30; EBN, -$1.11; EBN-CLM, +$0.53, -$0.21; RBM, -$.0346; NGM, -0.015; HOM, -$.0296
· Cash ethanol markets were stronger on Wednesday: Chicago added 2 ¼; New York gained 2; Gulf firmed 1 ¾; Tampa climbed 4; Dallas up 4 ¾; and LA was 3 ½ higher $1.72 per gallon
· Ethanol RINs see sharp gains: 2014’s up 5 3/8 at 74 ½-84 ½; 2015’s add 5 3/8 to 74 ½-84 ½; & 2016’s firm 5 ¼ to 74-84
· The June RBOB/June spread gave up $.0112 and settled at +$.02990/gallon inWednesday’s trade  
LIVESTOCK/POULTRY  
· On Wednesday, choice boxed beef values increased $2.43, and at $227.76 are at the highest level since March 22
· Estimates for Friday’s USDA Cattle on Feed: May 1 on feed, 100.1%; Apr placements, 98.6%; Marketed in Apr 101.6%
· USDA mandatory pork carcass cutout value declined 19-cents Wednesday to $82.87, but are up 19-cents vs. last week
· CME Lean Hog Index up $0.66 Wed. at $77.79. June futures were $1.525 lower but are still $3.435 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather