HIGHLIGHTS
· MARKET TREND—Lower-rain in the forecast: CN: Down $.05; SN: Down $.0725; WN: Down $.05; KWN: Down $.0575
· MACRO: Weaker $ presses the Nikkei nearly 1% lower, a sharp drop in April machinery orders doesn’t help; Shanghai and the Hang Seng are both closed for a holidy. EUROPE: Lower—DAX off 1.29%; both the FTSE and CAC are down .91-.92%. WALL STREET: Futures point to a lower start—DOW down 45; NAS, off 13 and the S&P, down 7 ¼. EXTERNALS: The $ Index is up .289 @ 93.885; gold$.90 lower @ $1,259.90; July crude, is down $.39 at $50.84/barrel
· T-storm Weather: Heat envelops the central U.S. over the next few days, lasting the longest in the central Plains. Scattered rain forms primarily within the northeast third of the Corn Belt each of the next few nights. Temps cool to nearer-normal levels next week as a large system in southeast Canada and waves of energy in northern U.S. disrupt the upper-level high. Each wave has potential to trigger rain in northern areas, but main wave unsuccessfully attempts to disconnect from jet stream while moving through central U.S. Mon.-Thu. Amounts of 0.50" to 1.50" most likely; highest from northern Plains through Corn Belt & Delta
· CN, Down $.05 @ $4.2625; CZ, Down $.0525 @ $4.3175. The funds bought 9 K yesterday
· SN, Down $.07 @ $11.7075; SX, Down $.0850 @ $11.4175 Funds: Bought 14 K SB, 6K SBM and 3 K SBO
· WN, Down $.05 @ $5.1450; WU, Down $.0550 @ $5.24. The funds added 7 K to their long position on Wednesday
CORN/SORGHUM      
· December 2016 corn futures closed at $4.37 on Wed.—the highest settlement for the contract since July 13, 2015
· Export Sales to be released at 7:30 AM CDT. Trade expects 31-43 mbu for 15/16 corn
· T-storm Weather: Once next week’s system exits, we forecast a larger upper-level high with areas of heat starting around June 17. Rain chances will initially be low, but thunderstorms eventually develop in northern & eastern areas
· Consultant: Argentina corn crop est. is unchanged at 25.0 MMT. Very good yields outside of previously flooded areas (e.g., in western Buenos Aires and northern La Pampa) will compensate somewhat for losses in the wetter regions
· Ethanol grind: 1,006,000 barrels/day for week end June 3—up 4.8% vs. last week and 1.4% higher vs. last year
SOYBEANS/WHEAT
· November soybean futures closed at $11.50 ¼ on Wed.—the highest settlement for the contract since June 27, 2014
· Export Sales report. Trade expects 7-15 mbu for 15/16 soybeans; soymeal, 75-175 K MT; and soyoil,20-60 K MT
· Consultant: In Brazil, domestic soybean prices are very attractive. Thus, soybean acreage next year may hold its own against corn in south, while there could be a greater than expected acreage expansion in central & northeastern areas
· Export Sales report. Trade expects -7 to +2 mbu for 15/16 all wheat and 11-18 mbu for 16/17
· Concern about wheat production and quality losses for wheat in France has surfaced following recent heavy rain
ENERGY
· Lower: CLN16, -$0.39, $50.84; EBQ, -$0.54; EBQ-CLN, +$1.17, -$0.10; RBN, -$.0217; NGN, -0.007; HON, -$.0175
· Cash ethanol markets were mixed once again on Wednesday: Chicago down 1; New York off 1 ½; Gulf eased ½; Dallas and Tampa firmed 1 ½; and LA was ½ higher at $1.82 per gallon
· Ethanol RINs gained: 2014’s firmed 7/8 to 83 ¼-84 ¼; 2015’s added 7/8 to 83 ¼-84 ¼; & 2016’s were up 7/8 at 83-84
· A surprising large production figure trimmed the July RBOB/July inverse $.0477 to-.0622/gallon yesterday
LIVESTOCK/POULTRY     ;
· On Wednesday, choice boxed beef values firmed 83-cents to $225.10, and are $2.75 higher vs. last week
· Cash cattle trading stayed quiet Wednesday, with asking prices of $130-$132 in the South and $210 in the North
· USDA mandatory pork carcass cutout value jumped $1.61 on Wednesday to $87.50—the highest since Oct. 21, 2015
· CME Lean Hog Index firmed $0.85 on Wed. to $79.02. June futures were $0.20 higher and are $3.03 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather