HIGHLIGHTS
· MARKET TREND—Sharply Lower-Britain Exits: CN: Down $.0875; SN: Down $.1175; WN: Down $.0775; KWN: Down $.0575
· MACRO: Britain bolts; equities erode; the EU headed for a new ear of uncertainty. ASIA: The Nikkei shed nearly 8% overnight as global markets reacted to the UK vote; Hang Seng closed down 2.9%; Shanghai, off 1.3%. EUROPE: Down sharply—the FTSE is off 4.5%; the DAX is nearly 7% lower and the CAC, down 8%. WALL STREET: 401-K’s to shrink—DOW futures 553 lower; S&P 500 points to an 82 lower start; NAS, 176 in the red. OUTSIDE MARKETS: Crude is $2.41 lower; risk-off environment with Gold surging $63.40; $ Index jumps 2.373 to 95.90
· T-storm Weather: Rain occurs within/near parts of Kansas today. Heat expands into the weekend, but breaks from northwest to southeast Sat.-Mon., triggering scattered rain; highest totals within northwest Corn Belt. Much of the central U.S. turns and remains cooler next week as heat focuses much further to the west, which is a favorable setup for a couple heavy thunderstorm clusters to affect southwest quarter to third of corn & soybeans & possibly the Delta June 27-July 3 – especially in/near Nebraska
· CN, Down $.0875 @ $3.7850; CZ, Down $.0875 @ $3.89. The funds continue to lighten their load, selling 30 K
· SN, Down $.1175 @ $11.1275; SX, Down $.16 @ $10.8550. Fund activity: Sold 15 K SB; 10 K SBM; and bought 2 K SBO
· WN, Down $.0775 @ $4.4650; WU, Down $.0675 @ $4.59. The funds sold 6 K on Thursday
CORN/SORGHUM     ;
· December 2016 corn futures Thu. closed at $3.97 ¾—down $0.51 (11%) in 4 trading days & lowest level since May 19
· ATI Research: U.S. corn exports during the last half of June and July/August could be about 20 mbu greater at 457 mbu compared to the same period in 2015
· ATI Research: U.S. old-crop sorghum export sales of 6.6 mbu in latest week were up 37% from the prior 4-week avg.
· T-storm Weather: Coolness in central U.S. is probable to ease from around July 3-4forward, leading to a warmer pattern as the upper-level high at least slightly expands, but whether or not it turns hot or produces rain is unknown
SOYBEANS/WHEAT
· ATI Research: U.S. soybean exports during the last half of June and July/August could more than double to 228 mbu compared to the year ago total of 100 mbu
· Consultant: Concern of potential for double crop U.S. soybeans to be planted in dry soils; could delay germination
· T-storm Weather: Over past 14 days, a total of 55% of U.S. soybean production received at least 100% of normal rain
· ATI Research: U.S. all wheat export sales for week end June 16 of 17.0 mbu were slightly above last year’s 16.0 total
· T-storm Weather: Kansas wheat harvest may slow today amid scattered rain of 0.25”-0.75”; isolated higher amounts
ENERGY
· Reeling: CLQ16, -$2.41, $47.69; EBQ, -$2.54; EBQ-CLQ, $0.73,-$.07; RBN, -$.0660; NGN, -0.039; HON, -$.0625
· Cash ethanol markets were mostly lower on Thursday: Chicago steady; New York and Gulf down 1; Dallas off ¼; Tampa up ½; and LA was 1 ½ lower at $1.72 ½ per gallon
· Ethanol RINs firmed: 2014’s up 1 3/8 to 85 ¾-86 ¾; 2015’s added 1 3/8 to 85 ¾-86 ¾; & 2016’s up 1 3/8 to 85 ½-86 ½
· The July RBOB/July ethanol spread gained $.0173 and settled at +$.02150 yesterday; trading -$.0327 this am
LIVESTOCK/POULTRY   ; ;
· ; Choice boxed beef values declined $1.62 on Thursday, are down $8.02 vs. last week and the lowest since May 12
· Estimates for today’s USDA Cattle on Feed: June 1 on feed, 102.1%; May placement, 110.1%; Marketed in May 105.0%
· USDA mandatory pork carcass cutout value up 34-cents on Thu. to $88.13, & is $1.45 higher compared to a week ago
· CME Lean Hog Index up $0.51 on Thu. to $84.02. July futures were $0.20 lower but are still $0.255 above the index
· Quarterly Hogs and Pigs report today: Avg. trade est, all hogs and pigs, 100.7%; breeding, 100.4%, market, 100.7%
Sources: Bloomberg, Dow Jones, AP, T-storm Weather