HIGHLIGHTS
· MARKET TREND—Mixed: CN: Down $.03; SN: Down $.0675; WN: Up $.0075; KWN: Up $.0075
· MACRO: ASIA: Chinese manufacturing data revealed lingering weakness with the May # coming in at 50.1, barely above the contraction stage. However, Shanghai was only down .08%; the Nikkei fell 1.62% and the Hang Seng, off .26%. EUROPE: took the Chinese data more to heart with all 3 major markets off .64% to .75%. WALL STREET: Futures don’t look optimistic—the DOW is 58 lower; the NAS is down 11.50 and the S&P, off 7. EXTERNALS: The $ Index is off 1/3rd of a point at 95.56; gold is $1.40 higher at $1,217.60 and July crude is trading $.72 lower at $48.38
· T-storm Weather: Scattered thunderstorms will pop up over the Corn Belt into the weekend while heavier amounts fall from the Southern Plains thorugh the Delta region. It will be dry in the other growing areas. Temperatures will be near-normal into the middle of next week. Beyond the 8th of June, the forecast becomes more uncertain. An upper level high will expand eastward and should result in very warm to hot temperatures across the south late next week with t-storms forming to the north and only limited rainfall in the south
· CN, Down $.03 @ $4.0175; CZ, Down $.03 @ $4.0550. The funds sold 15 Kon Tuesday
· SN, Down $.0675 @ $10.7175; SX, Down $.0725 @ $10.4850. Funds: sold 6 K SB; 5 K SBM and bought 3 K SBO
· WN, Up $.0075 @ $4.6525; WU, Up $.0075 @ $4.7625. The funds were sellers of 7 K to begin the week
CORN/SORGHUM         ;
· Corn crop rated 72 % G/E, versus expectations of 65-70% and 74% last year
· Corn was 94% planted as of May 29th, versus 92-95% estimated; 94% last year and the 5-year avg. of 92%.
· Export inspections on corn were light at only 31.0; trade was expecting 39-51 with 46.6/week needed
· Milo export inspections—routine at 2.6; 2.8 per week needed for the balance of the year
· Rapid planting progress in the ECB as IN, OH and MI go from 10-15 points behind average to as much as 7 ahead
· ATI Research—initial yield estimate for the 2016 corn crop at 167.2, versus USDA at 168.0 bpa
SOYBEANS/WHEAT
· Soybean export Inspections at 6.7 versus 11.2 needed and 3.2 last week
· Soybean planting progress at 73% versus 70-75% expected ; 68% last year and the 5-year average of 66%
· Wheat inspections were strong at 18.2, well above the trade’s 9-15 million bushel range
· April NOPA crush estimated at 157.0, down from 166.4 in March; SBO stx pegged at 2.4 billion lbs, up from 2.325
· USDA Crop Progress report show U.S. winter wheat Good/Excellent ratings up 1 point at 63%
· ATI winter wheat model was down 2 mbu at 1.462 billon
ENERGY
· Mixed: CLN16, -$0.72, $48.38; EBQ, -$0.83; EBQ-CLN, +$0.75, -$0.04; RBN, -$.0175; NGN, +0.007; HON, -$.0182
· Cash ethanol markets eased slightly following the 3-day weekend: Dallas & Tampa lost $.02; the Gulf and LA were $.01 lower with the latter at $1.80; NY shed 1 ¼ to $1.7025 and Chicago was off $.0158 to $1.62 ¾
· Ethanol RINs firmed 7/8’s of a cent: 2014’s, 80 ¼ -80 ¾; 2015’s, 80 ¼ -80 ¾; & 2016’s, 80-80 ½
· The June RBOB/June inverse increased $.0080 to -$.03310/gallon as trading resumed on Tuesday
LIVESTOCK/POULTRY ; </wbr>
· Choice boxed beef values were 73-cents lower on Tuesday and are down $2.98 vs. last week
· 5-Area Weekly Weighted Average Steer price down $5.76 v. last week to $124.99/cwt and $34.43 lower vs. last year
· USDA mandatory pork carcass cutout value firmed 58-cents on Tuesday to $83.88 and is up 22-cents vs. a week ago
· CME Lean Hog Index was $0.47 lower on Tue. at $77.76. June futures firmed $0.05 and are $2.815 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather