HIGHLIGHTS

·       TRENDS—Mostly firm:  CN, -$.02; SN, +$.0325; WN, +$.03; KWN, +$.0450

·       What caught my eye: End of May Brazil soybean stocks are estimated to be down 16%/12 MMT year to year, mostly as the result of a 16+ MMT/50% increase in exports during the Feb-May time frame

·       Global markets higher, again on economic optimism & easing U.S. domestic unrest.  Asia: Higher-- Nikkei, +1.29%; Shanghai, +0.07%; Hang Seng, +1.37%; EUROPE: Firm—DAX, +2.46%; FTSE, +1.34%; CAC, +2.04%.  WALL STREET: Futures, higher--DOW, +186; S&P, +15.5 NAS, +33.   EXTERNALS: July crude, +$0.03 @ $38.34; Gold: -$10.20 @ $1,724; Sep $ Index, -0.256 @ 97.375

·       T-storm Weather®: scattered thunderstorms affect the Corn Belt and Delta through at least Fri.  A complex period unfolds Sat.-Sun. as a tropical storm or hurricane and a large system approach the central U.S.  The setup likely results in thunderstorms in/near the Dakotas this weekend and at least some rain in the Delta, followed by rains further into the Corn Belt within Mon.-Wed.; 0.75" to 1.50" is probable for most through June 8, but it will take another day or two to better tune amounts

• CN, dn $.02 @ $3.2225; CU, dn $.0125 @ $3.2725.  The funds bought an estimated 2 K yesterday                  
• SN, up $.0325 @ $8.5375; SQ, up $.03 @ $8.5575.  Funds: bot 6 SB, 1 SBM, 4 SBO.  Board crush: $0.81 (N/N), -5; LY, $1.27
• WN, up $.03 @ $5.1075; WU, up $.03 @ $5.1525.  The funds sold 6 K Tuesday, rain in the EU forecast & HRW harvest underway       

CORN/SORGHUM

·       T-storm Weather®: sharp cooling & drying unfolds within June 8-10 from northwest to southeast across the U.S. Corn Belt & lasts ~5 days, followed by typical temperature fluctuations & thunderstorm chances around mid-month

·       U.S. Energy Information Administration (EIA) report scheduled to be released at 9:30 am CDT

·       Consultant: Brazil corn crop est. is unchanged this week at 96.0 MMT, with a neutral to lower bias going forward

·       T-storm Weather®: several cool fronts produce heavy rainfall of 1.75”-3.50” on second-crop corn in southern Brazil over the next two weeks, breaking drought as harvest approaches in Mato Grosso do Sul and Paraná

SOYBEANS/WHEAT

·       T-storm Weather®: sharp cooling & drying unfolds within June 8-10 from northwest to southeast across the U.S. Corn Belt & lasts ~5 days, followed by typical temperature fluctuations & thunderstorm chances around mid-month

·       Consultant: Argentina soybean crop est. is unch this week at 50.0 MMT; neutral to slightly lower bias going forward

·       ATI Research: bias on near-term U.S. wheat exports remains at 12-16 mbu per week

·       T-storm Weather®: the driest wheat areas of the E.U.; i.e. France, Germany, and the U.K., turn considerably wetter over the next 10 days as a cool and stormy period begins

ENERGY

·       Mixed: CLN20, +$0.03 @ $38.34; EBQ, -$0.45 @ $39.125; EBQ-QCLQ, -$0.53; RBN, -.0057; NGN, +.013; HON, -.0137

·       EIA Report Estimates (API): crude oil, +3.0 (-0.5); Gasoline, +1.0 (+1.7); Distillates, +2.7 (+5.9).  Estimates for ethanol prod. avg. 0.784 mbpd (range: 0.744-0.802).  Avg. est. of ethanol stocks: 23.046 mb (range 22.713-23.445)

·       Chicago ethanol gained $.0150 yesterday to $1.1975/gallon; basis, mixed:  NYC, -$.0125 @ +$.0575; Gulf, -$.0050 @ $.0950; Dallas, -$.0050 @ +$.1025; Tampa, +$.0050 @ +$.1925; LA, +$.0050 @ +$.2275

·       Ethanol RIN values, up: 2019’s, +4.00 @ 49 -52; 2020’s: +3.50 @ 49-54                                    &nb​sp;                       &nbs​p;                                                 ​;                           

·       The July RBOB/June ethanol inverse continues to narrow, losing $.0516 yesterday to $.0417/gallon, premium ethanol  

LIVESTOCK/POULTRY                &nbs​p;                      

• Choice boxed beef was $22.42 lower on Tuesday at $318.73, and is down $66.76 compared to last week
• Another round of light cash cattle trade occurred on Tue. in the North where dressed cattle traded for $176-$178
• The mandatory pork carcass cutout value declined $6.81 on Tue. to $73.64, & is $22.93 lower versus a week ago
• CME Lean Hog Index eased $0.73 on Tue. to $59.23.  June futures fell $2.200 and are $6.830 below the index

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