HIGHLIGHTS
· MARKET TREND—Mixed: CK, down $.0050; SK, up $.0175; WK, up $.0050; KWK, down $.0125
· MACRO—North Korea tensions and an expanding regulatory investigation into Chinese stock manipulation are giving the markets little cheer this morning, despite an impressive QI 6.9% PRC growth rate. ASIA—Mostly lower: Nikkei, +0.11%; Shanghai, -0.75%; Hang Seng, -0.21%. EUROPE—Closed. Wall STREET-Futures are lower: DOW, -15; S&P, -2.50; NAS, -1.50. EXTERNALS: Sep $ Index, -0.173 @ 100.125 ; April Gold, +$3.20 @ $1,289; May Crude, -$0.45 @ $52.76
· T-storm Weather: Several storm systems move across the central U.S. over the next week, producing generalized rainfall of 1.00” to 3.00” in most areas, though lesser amounts of 0.50” to 1.00” affect corn and spring wheat areas of the northern Plains, while higher amounts occur in/near eastern Kansas and Missouri. Best rain chances are across: 1) the southern third of the central U.S. today; 2) the northern half of the central U.S. Tue.-Thu; and 3) the southeast half of the central U.S. over Fri.-Sun.
· Corn: CK down $.0050 @ $3.7050; CN down $.0075 @ $3.7725. The Funds bought 5 K on Thursday
· SB: up $.0175 @ $9.5725; SN Up $.0125 @ $9.6750. Funds: bot 6 SB, 5 SBM, & sold 2 SBO. Board Crush: $.86, +2; LY; $.62
· Wheat: WK up $.0050 @ $4.3025; WN up $.0050 @ $4.4325. Fund activity was reported as even ahead of Good Friday
CORN/SORGHUM
· T-storm Weather: A sharply cooler period begins across the U.S. Corn Belt April 22-23 & lasts for around 5 days. Rain coverage & amounts will be lower within the period, likely allowing some areas to dry out despite pockets of showers
· Export Inspections released at 10 AM CDT; Corn, 41.2 mbu needed; 46.1 last week. Milo—3.4 needed; 6.1 last week
· ATI Research: The U.S. attaché is projecting a rather significant draw-down in ending 17/18 corn stocks in China by 33.0 MMT, or 32% of the USDA World Board’s April estimate of 102.3 million
· May 2017 corn futures on Friday closed at $3.71. One year ago, May 2016 corn futures settled at $3.78 ½
SOYBEANS/WHEAT
· T-storm Weather: In wettest soybean areas of central and southern Argentina, generally dry and cool weather dominate over the next 10 days as surface-level high pressure suppresses humidity, preventing significant rainfall
· ATI Research: Combined soybean production of Argentina-Brazil-Paraguay is projected to be 6.5 billion bushels, or 51% larger than the record U.S. 2016 soybean harvest of 4.3 billion
· T-storm Weather: The best overall conditions for planting over the next two weeks will be for spring wheat in the northern Plains (as long as rainfall is not heavier than expected this week)
· Export Inspections released at 10 AM CDT: Wheat, 24.9 needed; 23.6 last week
ENERGY
· Weaker: CLK17, -$0.45 @ $52.73; EBM, -0.46 @ $55.43; EBM-QCLM, +.01; RBK,-$.0153; NGK, -$0.038; HOK, -$.0109
· Cash ethanol markets were steady to higher on Thursday: Chicago firmed 3/8; New York gained 1; Gulf added ½; Dallas and Tampa were unchanged; and LA was 2 ¾ higher at $1.85 per gallon
· Ethanol RINs were weaker on Thursday: 2016’s down ¼ at 54 ½-54 ¾; and 2017’s eased ¼ to 54 ½-55
· The May RBOB/May ethanol spread slipped $.0058 to+$.06390/gallon on Thursday, premium RBOB
LIVESTOCK/POULTRY ;
· Choice boxed beef values firmed $1.41 on Friday to $212.08, and are $4.86 higher vs. the previous week
· Moderate to fairly active cash cattle trading occurred Thu., with prices in the South at $128—$2 higher v. last week
· USDA mandatory pork carcass declined 43-cents on Friday to $74.34, and is 49-cents lower compared to last week
· CME Lean Hog Index fell $0.48 on Thu. to $63.68. April futures were $0.225 higher but are still $1.23 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather