HIGHLIGHTS
· MARKET TREND—Mostly higher: CN: Up $.0025; SN: Up $.0675; WN: Up $.0125; KWN: Up $.0175
· MACRO: Rising oil prices along with an EU/IMF debt relief agreement for Greece boosts equities. ASIA: Nikkei rises 1.6%; Hang Seng soars 2.7%; Shanghia sheds .23%. EUROPE: solid start with FTSE, +.58%; CACV, +.91%; DAX, +1.30%. WALL STREET: Futures point to a positive start: DOW, +61; S&P, +7 ½; NAS, +19.50. EXTERNALS: The $ Index is up .039 @ 95.65; Gold is trading $7.90 lower @ $1,222.800; July WTI is $.55 higher @ $49.17
· T-storm Weather: A series of systems and their smaller-scale waves of energy drift into the central U.S. and dissipate over the next 10 to 14 days. The setup causes a continual influx of mild and muggy air to move northward, ultimately resulting in widespread coverage of above to much-above normal rainfall. Regarding timing in the near-term, thunderstorms are most likely across the northeast half of the Corn Belt today. Beyond today, thunderstorms affect varying areas every day through early June (but it will not rain every day at any given location)
· CN, Up $.0025 @ $3.9775; CZ, Steady @ $4.0275. The funds bought 4 KTuesday
· SN, Up $.0675 @ $10.6125; SX, Up $.04 @ $10.3325. Funds: sold 3 K SB; even on SBM and sold 2 K SBO
· WN, Up $.0125 @ $4.6525; WU, Up $.0125 @ $4.7625. The funds bought 4 K yesterday
CORN/SORGHUM         ;
· December 2016 corn futures closed at $4.02 ¾ Tue.—one year ago, December 2015 corn futures settled at $3.73 ¼
· ATI Research: Near-term U.S. corn exports pegged to range from 47-57 mbu; we are inclined to go toward lower end
· Consultant: Brazil corn crop estimate is unchanged at 76.0 MMT but could decline another 1-2 million tons as safrinha (double crop) production continues to suffer from generally hot and dry conditions in central growing areas
· T-storm Weather: Drought worsens further in northern Brazil corn areas (~60% ofsafrinha crop) through two weeks
· Ethanol margins: $0.21 per gallon—up $0.20 last week but well below $0.60 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: Expect near-term U.S. soybean exports to average around 9.0 mbu per week, near the 5-year avg. of 8.8
· Consultant: Argentina soybean crop estimate unchanged at 56.0 MMT. While part of the soybean crop suffered from flooding in April, the yields in Buenos Aires and La Pampa are coming in significantly better than the previous record
· T-storm Weather: Un-harvested soybeans in Argentina remain unseasonably cool with no rain over the next week
· ATI Research: Near-term U.S. all wheat exports are forecast to range from 13-17 mbu per week
· ATI Research: U.S. HRS wheat yield is estimated at 45.6 bpa compared to 46.2 last year and the record of 46.3 in 2014
ENERGY
· Higher: CLN16, +$0.55, $49.17; EBN, +$0.57; EBN-CLN, +$0.02, +$0.03; RBM, -$.0141; NGM, +0.011; HOM, +$.0193
· EIA estimates: crude, -2.5 (API: -5.1); Gasoline, -1.1 (+3.6); Distillates, -0.8 (-2.9)
· A firmer trend was noted in cash ethanol markets on Tuesday: Chicago added 1 ¼; New York up 2 ¼; Gulf climbed ¾; Tampa gained 1; Dallas increased ½; and LA was ½ higher at $1.74 ½ per gallon
· Ethanol RINs eased: 2014’s off 1 ¼ at 76 ¼-77 ¾; 2015’s down 1 ¼ to 76 ¼-77 ¾; and 2016’s declined 1 ¼ to 76-77 ½
· The June RBOB/June spread gave up $.0042 to settele at +$.03140/gallon Tuesday
LIVESTOCK/POULTRY  
· Choice boxed beef values declined $1.05 on Tuesday, and at $223.27 are $2.06 lower compared to a week ago
· August live cattle futures close $1.275 lower Tue. at $113.175--lowest settlement price for contract since April 29
· USDA mandatory pork carcass cutout value was 62-cents lower on Tue. at $83.04, and is down 2-cents v. last week
· CME Lean Hog Index was $0.03 higher Mon. at $78.96. June futures up $0.60 and are $0.715 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather