HIGHLIGHTS
· MARKET TREND-Lower: CN: Down $.0125; SN: Down $.0850; WN: Down $.0275; KWN: Down $.0275
· MACRO: Wires say stocks are working lower on fears of a Fed rate hike. ASIA: The Nikkei edged .05% lower; Shanghai lost 1.228% and the Hang Seng shed 1.45% overnight . EUROPE: In the red with the DAX and CAC 40 off .29-.32% and the FTSE, .48% lower. WALL STREET: Futures are lower: DOW, down 14; NAS, off 3 ¼; S&P, down 1 ¼. EXTERNALS: The $ Index is up nearly 1/3rd of a point at 94.92; Gold is down $3.40 @ $1,274.80 and June WTI is up $.12 at $48.43/barrel
· T-storm Weather: Cool weather continues across the central U.S. throughFriday, followed by sharp warming from west-to-east over Sat.-Tue.; maximums mostly in the 70s-80s in all areas by Tuesday, May 24. Before warming begins, a strong wave of energy moves from the southern Plains through the Delta and southeast Corn Belt, producing significant rainfall of 1.00" to 2.00". The warmer pattern will be accompanied by thunderstorms next week. The exact setup will take days to assess, but widespread coverage of near-normal rainfall is expected; wettest overall from the northern Plains through the western Corn Belt
· CN, Down $.0125 @ $3.9575; CZ, Down $.01 @ $4.0275. The funds bought 10 K on Tuesday
· SN, Down $.0850 @ $10.7175; SX, Down$.0725 @ $10.60. Funds bought 10 K SB; 8 K SBM and were even on SBO
· WN, Down $.0275 @ $4.79; WU, Down $.0275 @ $4.8850. Fund buying totaled 4 K yesterday
CORN/SORGHUM     ;  
· December 2016 corn futures closed at $4.03 ¾ Tue.—highest settlement price for the contract in calendar year 2016
· ATI Research: Bias is U.S. corn exports over the near term should average 50 mbu per week vs. the 5-year avg. of 32.4
· Consultant: Brazil corn crop estimate lowered 2.0 MMT to 76.0 MMT due to ongoing hot and dry weather for safrinha (double crop) areas. Worst case scenario if weather remains poor would be additional reduction of 2.0 MMT to 74.0
· T-storm Weather: Drought worsens in northern Brazil corn areas (~60% of safrinhaproduction) as early harvest nears
· Ethanol margins: $0.21 per gallon—up $0.20 last week but well below $0.63 last year. EIA report at 9:30 AM CDT
SOYBEANS/WHEAT
· ATI Research: Near-term U.S. soybean exports expected to average 10 mbu per week, which is in line with last year
· Consultant: Brazil soybean crop estimate lowered 0.5 MMT to 97.0 MMT due to lower than expected yields in northeastern and far southern areas. Worst case scenario would be an additional reduction of 1.0 MMT to 96.0
· T-storm Weather: Well-organized rain is not foreseen in Argentina soybean areas where flooding occurred in April
· ATI Research: Near-term U.S. all wheat exports forecast to continue to range from 13-17 mbu per week
· T-storm Weather: Little to no rain expected for wheat across northern half of central U.S. this week (and weekend)
ENERGY
· Mixed: CLM16, +$0.12, $48.43; EBN, +$.05; EBN-CLM, +$0.90, -$0.07; RBM, -$.0006; NGM, -0.015; HOM, -$.0047
· EIA estimates: crude, -4.7 (API: -1.1); Gasoline, -2.0 (-1.9); Distillates, -3.0 (-2.0)
· A firmer tone was evident in cash ethanol markets on Tuesday: Chicago up 1 ¾; New York added 1 ½; Gulf and Tampa gained 2; Dallas climbed 1 ¼; and LA was 2 higher $1.72 per gallon
· Ethanol RINs were lower: 2014’s off 1 at 74-74 ¼; 2015’s down 1 at 74-74 ¼; and 2016’s declined 7/8 to 73 ½-74
· The June RBOB/June spread widened ¼+ cent to +$.04110/gallon on Tuesday
LIVESTOCK/POULTRY     ;
·   Choice boxed beef values were $2.93 higher on Tuesday, and at $225.33 are up $14.63 vs. last week
· Cash cattle trading remained quiet on Tuesday, with a few asking prices in the South at $136 to $137
· USDA mandatory pork carcass cutout value eased 28-cents on Tuesday to $83.06 but 85-cents higher vs. a week ago
· CME Lean Hog Index $0.41 higher Tue. at $77.13. June futures were $0.275 lower but are still $5.62 above the index
Sources: Bloomberg, Dow Jones, AP, T-storm Weather