HIGHLIGHTS
· MARKET TREND-Mostly Lower: CK, Down $.0125; SK, Down $.0175; WK, Up $.0025; KWK, Down $.0375
· MACRO: ASIA: Japan’s PMI survey shows sharp decline in mfg outlook—Nikkei falls 3.1% on export picture; S Ko’s Kospi was off .8%; Shanghai and Hang Seng are closed. EUROPE: mostly higher—CAC, +.49%; DAX, +.91% while the FTSE is off 1.3%. U.S. Pre-Markets: DOW futures, +20; NAS, +3; S&P, +2.75. EXTERNALS: $ Index, down .237 @ 92.91; Gold, up $13.30 @ $1,302.50; June Crude is $.32 weakerat $45.60 per barrel
· T-storm Weather: Coolness dominates the U.S. Corn Belt over the next several days, with maximums in the 50s-60s and minimums in the 30s-40s. The Plains will also be cool through today, but near- and above-normal maximums in the 70s-80s follow from Wednesday forward. Mildness then expands further to the east Thursday-Friday. Pockets of light rain recur in parts of the Delta and southeast half of the Corn Belt today (scattered 0.20”-0.40” totals), and another system develops similar totals across the eastern third of the Corn Belt aroundWednesday. Mainly dry weather occurs elsewhere into at least Saturday
· CK, Down $.0125 @ $3.89; CN, Down $.01 @ $3.9075. Deliveries, 0. Funds: Bought 10 K on Friday
· SK, Down $.0175 @ $10.1825; SN, Down $.0175 @ $10.28 Funds: Bought 5 K SB; 2K SBM; sold 2 K SBO. Dely: 2,851 SBO: 171 SB
· WK, Up $.0025 @ $4.7825; WN, Down $.0175 @ $4.8675. The funds bought 3 K on Friday. Dely: 761 HRW; 544 SRW
CORN/SORGHUM         ;
·   Export Inspections released at 10 AM CDT; Corn, 41.3 needed; 44.8 last week. Milo—3.1 needed; 6.5 last week
· USDA Crop Progress report (release at 3:00 PM CDT) could show U.S. corn planting as of May 1 at 45-50% vs. approx. 45% last year and the 5-year average of approx. 30%
· T-storm Weather: Mainly dry weather continues for at least two weeks in driest corn producing areas of Center-West Brazil. Conversely, unseasonably heavy rain of 2.00”-4.00” affects southern 30% of corn for one week starting Fri-Sat
· Commitment of Traders report: Non-Commercial long corn futures only positions increase 38,612 contracts
SOYBEANS/WHEAT
· Export Inspections released at 10 AM CDT; Soybeans, 7.8 needed; 10.3 last week
· T-storm Weather: Argentina soybeans stay cooler than normal & a worsening of wetness is not immediately foreseen
· USDA Crop Progress report (release at 3:00 PM CDT) could show U.S. soybean planting as of May 1 at 8-13% vs. approx. 10% last year and the 5-year average of approx. 7%
· Commitment of Traders report: Non-Commercial long soybean futures only positions increase 959 contracts
· T-storm Weather: Widespread rain of 0.50”-1.50” affect U.S. HRW wheat in much of central/southern Plains May 8-10
· Export Inspections released at 10 AM CDT; Wheat, 22.6 needed; 14.9 last week
ENERGY
· Lower: CLM16, -$0.32, $45.60; EBN, -$.48; EBNM-CLM, +$1.27, -$0.18; RBM, -$.0007; NGM, -0.048; HOM, -$.0060
· A mixed trend was noted in cash ethanol markets on Friday: Chicago down ¼; New York steady; Gulf steady; Tampa and Dallas off 1; but LA was 1 higher at $1.72 per gallon
· Ethanol RINs mostly steady: 2014’s unch at 73-73 ½; 2015’s unch at 73-73 ½; and 2016’s down ¼ at 72 ½-73
· The June RBOB/May Ethanol spread closed at +$.0398/gallon on Friday, down $.0232
LIVESTOCK/POULTRY ;
· Choice boxed beef values declined $1.05 on Friday, and at $211.45 are the lowest for calendar year 2016
· Cash cattle trading was light on Friday with prices quoted at $122-$124 in the South and $194 in the North
· USDA mandatory pork carcass cutout value gained 31-cents on Fri. to $81.59—the highest level since Oct. 28, 2015
· CME Lean Hog Index gained $0.66 on Friday to $70.47. May futures were up $0.575 and are $7.43 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather