HIGHLIGHTS

·       TRENDS—Mixed: CN, +$.0075; SN, +$.0075; WN, -$.04; KWN, -$.0125

·       What caught my eye: Uneventful report yesterday but nice to see USDA trim SB exports 25; boost crush 15 on continued strong domestic meal demand; tweak SBO use (dom, down; exports, up) and take a little off ethanol grind, all in the right direction

·       Stock futures suggest a positive bounce but some analysts remain tentative.  Asia: Weak-- Nikkei, -0.75%; Shanghai, -0.04%; Hang Seng, -0.73%; EUROPE: Higher—DAX, +1.49%; FTSE, +1.41%; CAC, +2.40%.  WALL STREET: Futures, Higher--DOW, +590; S&P, +58; NAS, +160.   EXTERNALS: July crude, -$0.12 @ $36.22; Gold: +$1.70 @ $1,742; Sep $ Index, -.133 @ 96.590

·       T-storm Weather®: little to no rain is expected across most U.S. crop production areas over the next week because of low humidities, which prevent any thunderstorms from forming into clusters.  Coolness prevails over the next few days, followed by sharp warming from west to east over Sun.-Tue. (June 14-16).  Very warm and hot weather then dominate later next week and into next weekend

• CN, up $.0075 @ $3.3050; CU, up $.0025 @ $3.3525.  Funds buy 7 K on report day                    
• SN, up $.0075 @ $8.6675; SQ, up $.01 @ $8.69.  Funds: Even SB, bot 1 SBM, sold 5 SBO.  Board crush: $0.74 (N/N), -4; LY, $1.28
• WN, dn $.04 @ $4.9525; WU, dn $.0375 @ $5.02.  Fund selling said to be 6 K yesterday—EU weather, Russian crop size            

CORN/SORGHUM

·       T-storm Weather®: a large system & cool front move across the northern U.S. Jun. 19-21, & remain probable to break warmth & trigger scattered rain; however, substantial coverage and amounts will be limited to northern areas

·       U.S. corn export sales of 26.0 mbu for 19/20 delivery for week ending June 4 were up 4% from last week but down 12% versus the 4-week avg.  However, unshipped export sales of 428 mbu are still up 52% versus 281 mbu last year

·       USDA in Thursday’s Supply/Demand report lowered its 19/20 corn used for ethanol estimate by 50 mbu to 4.900 bbu, “reflecting a slower-than-expected rebound in ethanol production”

·       T-storm Weather®: some thunderstorms affect far southern Brazil the next two weeks, producing 1.00”-3.00” in/near Rio Grande do Sul, but sharply drier weather to the immediate north, thereby allowing corn harvesting to continue

SOYBEANS/WHEAT

·    &nb​sp;  T-storm Weather®: a large system & cool front move across the northern U.S. Jun. 19-21, & remain probable to break warmth & trigger scattered rain; however, substantial coverage and amounts will be limited to northern areas

·       U.S. 19/20 soybean export sales of 36.9 mbu for the week ending June 4 were up 36% from the prior 4-week avg

·       Unshipped export sales U.S. SRW wheat for the week ending June 4 are 20 mbu, which is 27% below the 5-year avg.

·       T-storm Weather®: several systems produce rain and coolness over the next 7-10 days in the western E.U., breaking dryness for winter wheat production

ENERGY

·       Mixed: CLN20, -$0.12 @ $36.22; EBQ, +$0.18 @ $38.73; EBQ-QCLQ, +$0.25; RBN, -.0088; NGN, -.026; HON, +.0092

·       Chicago ethanol took a breather, slipping $.01625 on Thursday to $1.25625; basis, firm:  NYC, +$.00625 @ +$.08375; Gulf, +$.007625 @ +$.09875; Dallas, +$.00625 @ +$.12375; Tampa, +$.00625 @ +$.23875; LA, +$.0265 @ +$.25375

·       Ethanol RIN values, mixed: 2019’s, -0.25 @ 45 – 45 ½; 2020’s: +0.875 @ 47-48                           &​nbsp;                        &​nbsp;                       &n​bsp;                       &nb​sp;                       &nbs​p;              

· &n​bsp;     The July RBOB/July ethanol inverse rose $.0431 yesterday to $.0732/gallon, premium ethanol

LIVESTOCK/POULTRY                                   &n​bsp;   

• Ch​oice boxed beef eased $0.50 on Thursday to $235.56, and is down $36.70 versus last week  
• Cash cattle trade developed on Thu. throughout the North & South, and for significantly lower prices in both regions
• The mandatory pork carcass cutout value firmed $0.80 on Thu. to $68.77, but is still down $4.96 versus a week ago
• CME Lean Hog Index fell $1.19 on Thu. to $49.99.  June futures gained $0.125 but are still $2.015 below the index

Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather®