HIGHLIGHTS
· MARKET TREND— Lower: CU: down $.0625; SQ: down $.0475; WU: down $.1675; KWU: down $.1675
· MACRO: Global markets weaker as Central banks attempt to exit from their easy money policy of the past few years. ASIA—Mostly lower: Nikkei, -0.44%; Shanghai, +0.17%; Hang Seng, -0.22%. EUROPE: Lower—DAX, -0.89%; FTSE,-0.79%; CAC, -1.08%. WALL STREET—Futures are lower—DOW, -75; S&P, -10.75; NAS, -44.00. EXTERNALS: $ Index:-.179 @ 95.880; July Gold: +$4.70 @ $1,225; Sep crude:+$.60 @ $45.94/barrel. Del’ys: SBM, 261; SBO, 0; C, 1,370; HRW, 408; SB, 962; SRW, 201
· T-storm Weather: Scattered thunderstorms and a swath of rain affect the Corn Belt and Delta through Saturday as a circulation and cool front pass; wettest over the next 24 to 36 hours in swath of the southern Corn Belt and northern Delta. The Corn Belt, Delta, and adjacent areas of the Plains remain seasonable to cool through Saturday, while heat focuses on the western Plains (including one-half to two-thirds of spring wheat)
· CU, down $.0625 @ $3.8575; CZ, down $.0650 @ $3.9750. The funds bought an estimated 5 K on Wednesday
· SQ, down $.0475 @ $9.77; SX, down $.0475 @ $9.8950. Fund activity: Bot 6 K SB, 5 SBM, 2 SBO. Board Crush: $.84, -6; LY, $.84
· WU, down $.1675 @ $5.4325; WZ, down $.17 @ $5.63. Fund buying was pegged at 5 K yesterday
CORN/SORGHUM
· U.S. corn crop is rated 68% Good/Excellent versus 67% last week (75% last year). Silking is pegged at 10% compared to 14% last year and the 5-year average of 13%
· ATI Research: Updated yield estimate for the 2017 U.S. corn crop is 166.9 bpa versus June USDA projection of 170.7
· T-storm Weather: Heat envelops Plains & western Corn Belt Sun-Mon; highs often reach at least mid-90s, then likely continue for at least 1 week. Best chance for rain is across eastern Corn Belt; amounts taper with westward extent
· Consultant: Argentina corn crop estimate is steady this week at 39.0 MMT. Wet conditions continue to slow harvest
SOYBEANS/WHEAT
· U.S. soybean crop is rated 64% Good/Excellent versus 66% last week (70% last year). Blooming is pegged at 18% compared to 20% last year and the 5-year average of 17%. ATI yield estimate is 47.3 bpa vs. June USDA est. of 48.0
· T-storm Weather: Subsoil dryness is affecting 28% of U.S. soybeans (primarily from dryness in Plains, & parts of IL, IA and MN). Much of the Plains and western Corn Belt is projected to be much drier than normal over the next 10 days
· ATI Research: Winter wheat crop est. +10 mbu to 1.252 bbu; HRS (adjusted for planted acres) -18 mbu to 357 mbu
· MGE September 2017 wheat futures experienced a $0.94 ½ trading range on Wed., closing $.03 ¾ higher at $8.19 ¾
· T-storm Weather: Temps average much above normal through at least mid-month for U.S. spring wheat; dry for most
ENERGY
· Higher: CLU17, +$0.60@ $45.94; EBU, +$0.61 @ $48.40;EBU-QCLU, +.01; RBU, +.0173; NGU, +.045; HOU, +.0163
· EIA Report Estimates (API): crude oil, -2.5 (-5.8); Gasoline, -1.4 (-5.7); Distillates, -0.1 (+0.4)
· A weaker trend was noted in cash ethanol markets on Wednesday: Chicago, New York, Gulf, Dallas and Tampa were all down 2; and LA was ½ lower at $1.73 ½ per gallon
· Ethanol RINs were slightly higher on Wednesday: 2016’s and 2017’s firmed ¾ to 70-75
· The Aug RBOB/July ethanol spread tighted $.0274 and is now at -$.0086/gallon, premium ETOH
LIVESTOCK/POULTRY
· Choice boxed beef values fell 31-cents on Wednesday to $222.58, and are down $6.85 vs. a week ago
· Light cash cattle trading was reported in parts of the North on Wed. at $117, which is $1.50 lower than last week
· USDA mandatory pork carcass cutout eased 8-cents on Wednesday to $103.54, but is still $1.06 higher vs. last week
· CME Lean Hog Index firmed $0.22 on Wed. to $91.93. July futures gained $1.35 & are now 12-cents above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather