HIGHLIGHTS
· MARKET TREND—Mixed--CU: Down $.0025; SQ: Up $.09; WU: Down $.0275; KWU: Down $.0125
· MACRO: Equity markets are mixed this morning, following Monday’s U.S. decline and rising U.S. oil stocks in the middle of the summer driving season.ASIA: The Nikkei fell 1.43% overnight while the Hang Seng gained .62% and Shanghai was 1.14% higher. EUROPE: The DAX & FTSE are .15% and .28% higher; the CAC is .19% lower as investors focus on earnings. WALL STREET: Futures suggest little excitement—The DOW, up 1; S&+, down 1; NAS, 1.50 higher. OUTSIDE MARKETS: CLU is $.41/barrel lower; the $ Index is off .271 @ 97.055 and & August Gold futures are $1.60 higher @ $1,21.10
· T-storm Weather: A moderately-strong system & a stronger cool front trigger thunderstorms across most areas over today-Sat. (esp. Wed.-Fri. in the Corn Belt), then followed by a day or two of showers after the front passes, ultimately resulting in 1.00”- 2.00” of rain for most corn & soybeans through Sun. Temperatures will be near- to slightly above-normal behind the first cool front, but several days of coolness follow the next front Wed.-Fri.; maximums in the 70s-80s coincide with minimums in 50s-60s
· Corn: CU Down $.00125 @ $3.3450; CZ Down $.0025 @ $3.41. The funds were even in Monday’s trading session
· SB: SQ Up $.09 @ $9.9275; SX Up $.0825 @ $9.85. Funds: sold 20K SB, 8 SBM; 5 SBO. Aug crush, -$.03, $.86; LY: $1.27
· Wheat: WU Down $.0275 @ $4.2625; WZ Down $.02 @ $4.5425 The funds again bought 5 K to begin the week
CORN/SORGHUM        
· USDA pegs U.S. corn silking at 79% vs. 71% in 2015 and the avg. of 70%. Good/Excellent crop ratings of 76% steady vs. last week but above 70% last year. Sorghum: Good/Excellent down 3 points from last week to 65% v. 68% in 2015
· ATI Research: U.S. corn balance sheet; 15/16 carryout est. at 1.743 bbu; 16/17 carry-out est. at 2.468 bbu
· ATI Research: U.S. sorghum balance sheet; 15/16 carryout forecast at 55 mbu; 16/17 carry-out pegged at 32 mbu
· T-storm Weather: Coolness exits July 31-Aug. 1 resulting in a period of near- & above-normal maximums in 80s-90s with minimums in 60s-70s. The warmer pattern helps rain to resume across a large area, especially central & south
SOYBEANS/WHEAT
· USDA pegs U.S. soybean blooming at 76% vs. 67% last year and 5-year avg. of 66%. Setting pods is 35% vs. 29% last year and the avg. of 26%. Good/Excellent crop ratings are 71%, unchanged vs. last week and above 62% in 2015
· ATI Research: U.S. soybean balance sheet; 15/16 carryout at 300 mbu, while 16/17 carry-out is est. at 215 mbu
· T-storm Weather: Data show that recent U.S. heat wave is not representative of the last 30 days because of a very cool 7-day period that started June 28, following by two weeks of near-normal readings over July 5-18
· ATI Research: Updated 2016 U.S. spring wheat crop est. is 491 mbu—down 5 million bushels from last week
· ATI Research: U.S. HRW wheat balance sheet; 16/17 carryout pegged at 528 mbu compared to 446 last year
ENERGY
· Lower: CLU16, -0.41, $42.70; EBU, -0.28; EBU-CLU, $1.73, +$.140; RBU, -.0165; NGU, -.023; HOU, -$.0078
· Most cash ethanol markets posted slight gains on Monday: Chicago added ¾; New York firmed 1 ½; Gulf up 2; Tampa and Dallas climbed ½; but LA was unchanged at $1.63 per gallon
· Ethanol RINs firmer: 2014’s up ½ to 95-95 ¾; 2015’s added ½ to 95-95 ¾; and 2016’s climbed ½ to 94 ¾-95 ½
· The Aug RBOB/Aug ethanol inverse increased over 3 ½ cents to -$.13790/gal <wbr>
LIVESTOCK/POULTRY ;    
· Choice boxed beef values eased $1.50 on Monday to $198.59, and are down $3.98 vs. last week
· 5-Area Weekly Weighted Average Steer price down $2.37 v. last week to $114.64/cwt and $30.84 lower vs. last year
· USDA mandatory pork carcass cutout value was steady on Monday at $87.87, but is $1.86 lower vs. a week ago
· CME Lean Hog Index was down $0.68 on Mon. at $76.45. August futures up $0.40 but are $0.775 below the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather