HIGHLIGHTS
· MARKET TREND—Mixed: CN: Up $.0175; SN: up $.0125; WN: down $.0475; KWN: down $.0475
· MACRO: Oil is lower and so are most equity markets; addition of numerous Chinese companies to MSCI’s Emerging Markets Index has little impact. ASIA—Mostly lower: Nikkei, -0.45%; Shanghai, +0.52%; Hang Seng, -0.57%. EUROPE: Lower—DAX, -0.62%; FTSE, -0.35%; CAC, -0.99%. WALL STREET—Futures are lower—DOW, -19; S&P, -5.75; NAS, -18.25. EXTERNALS: The $ Index: -.098 @ 97.35; gold: +$4 @ $1,245; July crude: $.20 lower @ $43.31/barrel
· T-storm Weather: Several waves move across the central U.S. through Sat. This setup normally produces significant rainfall, but winds from Tropical Depression 3 at least partially interfere with the setup. Some thunderstorms result, but heaviest rainfall will likely be limited to/adjacent Wisconsin when a wave passes tonightand Thu., and across the Delta when the remnant of the tropical system is shoved eastward; otherwise, rainfall will be scattered and primarily outside the spring wheat belt
· CN, Up $.0175 @ $3.7175; CZ, Up $.0175 @ $3.8975. Fund selling was estimated at 10 K on Tuesday
· SN, Up $.0125 @ $9.295; SX, Up $.0050 @ $9.3925. Fund activity: Sld 6 K SB, 2 K SBM, 6 K SBO. Board Crush: $.86, -1; LY, $.77
· WN, Down $.0475 @ $4.6775; WU, Down $.0475 @ $4.83. Fund buying yesterday was pegged at 5 K
CORN/SORGHUM
· T-storm Weather: Most areas turn/remain dry this weekend and early next week as an unseasonably cool air mass passes, leaving most areas seasonable to cool for the upcoming 7 to 10 days
· ATI Research: The model forecast for near-term U.S. corn exports reverted back to its usual seasonal trend, off 2.9 mbu to 45.3 mbu per week. The model range is 41-50
· Consultant: Nationwide safrinha (double crop) corn crop in Brazil is 4.9% harvested according to AgRural vs. 4.6% avg.
· Ethanol margins: $0.20 per gallon—up vs. $0.17 last week but below $0.43 in 2016. EIA report at 9:30 am CDT
SOYBEANS/WHEAT
· ATI Research: Near-term U.S. soybean export point estimate improved from 10.7 mbu last week to 11.0 this week
· Consultant: Brazil soybean crop est. is unchanged at a record 113.0 MMT. The Brazilian crop is probably between 60-65% sold; sales have picked up in recent week due to improved soybean prices and a weaker Brazilian currency
· MGE July 2017 wheat futures traded $6.57 on Tuesday.—highest price for nearby MGE wheat since Dec. 22, 2014
· T-storm Weather: Much of the U.S. Northern Plains hard red spring wheat region remains dry into the weekend with than 0.25” forecast
ENERGY
· Weaker: CLQ17, -$0.20 @ $43.31; EBQ, -$0.24 @ $45.78; EBQ-QCLQ, -.06; RBQ, -.0045; NGQ, +.021; HOQ, -.0055
· EIA Report Estimates (API): crude oil, -2.2 (-2.7); Gasoline, +0.4 (+0.3); Distillates, +0.6 (+1.8)
· Cash ethanol markets were mostly weaker on Tuesday: Chicago, New York, Tampa and Gulf were all down 2; Dallas declined 2 ¾; but LA was unchanged at $1.73 per gallon
· Ethanol RINs were weaker on Tuesday: 2016’s and 2017’s fell 1 5/8 to 74-75 ½
· The July RBOB/July ethanol inverse eased $.0014 to$.0948/gallon
LIVESTOCK/POULTRY  
· Choice boxed beef values plummeted $2.47 on Tuesday to $246.99 , and is $4.20 lower compared to a week ago
· 5-Area Weekly Weighted Average Steer price down $5.95 v. last week at $130.12/cwt, but is up $9.53 v. last year
· USDA mandatory pork carcass cutout soared $2.66 on Tuesday to $98.30, and is up $3.71 vs. last week
· Nearby board hog crush value is $47.81/cwt vs. last week’s $50.35, last month’s $48.31 & last year’s $51.17
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather