HIGHLIGHTS

• MARKET TREND—Firmer: CK, +$.0175; SK, +$.0525; WK, +$.0250; KWK, +$.0225
• MACRO: Treasury yields hit 3%; several companies suggesting current quarter could be the high water mark for the year. Asia--Lower: Nikkei, -0.28%; Shanghai, -0.35%; Hang Seng, -1.01%.  EUROPE: Lower: DAX, -1.56%; FTSE, -0.65%; CAC, -0.61%.  WALL STREET: Futures are Lower: DOW, -54; S&P, -6.25; NAS, -22.25. EXTERNALS: Apr Gold: -$6.40 @ $1,325; June crude: +$0.11 @ $67.81; $ Index, +0.343 @ 89.970

·       T-storm Weather: Rain occurs today-Thursday within central / southern Plains and Delta.  Mainly dry weather occurs elsewhere, followed by mainly dry weather in all areas over Friday-Monday.  Temperatures also turn sharply warmer from west to east Saturday-Sunday, then lasts for 3-5 days.  The mild period ends as next week progresses and large systems pass, producing widespread rain across central U.S. – likely in western corn / soybean (and wheat areas) Tuesday-Wednesday, then further east

·       CK, up $.0175 @ $3.83; CN, up $.0175 @ $3.9175.  The funds bought 6 K on Tuesday               

• SK, up $.0525 @ $10.2750; SN, up $.0525 @ $10.3925. Funds: 0 SB, 0 SBO, 0 SBM.Board crush:  $1.37, -2; LY: $.83
• WK, up $.0250 @ $4.75; WN, up $.0350 @ $4.8775.  Fund buying totaled 5 K yesterday         

       CORN/SORGHUM

• ATI Research: The 5-year avg. for U.S. corn planting progress increases approximately 13% from April 22-29 to 27%
• T-storm Weather: In Brazil, drying affects most second-crop (safrinha) corn over next 10 days, likely developing stress for the southern half of the production belt.  Some rain may follow in southern areas in 10 to 14 days (namely Parana)

·       Consultant: Argentina corn production estimate is steady at 32.0 MMT with a neutral to lower bias.  Improved weather may help stabilize some of the latest maturing corn, but is coming too late for the majority of the crop

• Ethanol margins: $0.27 per gallon—up vs. $0.24 last week but below $0.38 in 2017.  EIA report at 9:30 am CDT

SOYBEANS/WHEAT

• ATI Research: The 5-year avg. for U.S. soybean planting progress increases approximately 3% from April 22-29 to 5%

·       Consultant: Argentina soybean crop estimate is steady at 39.0 MMT with a neutral to lower bias.  Harvest at ~40%

·       T-storm Weather: Unseasonably heavy rain (2.00”-4.00”) over the next 2 weeks may slow Argentina soybean harvest

·       ATI Research: The 5-year avg. for U.S. spring wheat planting progress increases approx. 11% from April 22-29 to 36%

• T-storm Weather: Rain (0.25”-0.75”) affects much of Plains/Delta thru Thu., including drought-stricken HRW wheat

ENERGY

·       Mixed: CLM18, +$0.11@$67.81; EBM, $0.0@$73.86; EBM-QCLM, -$0.10;&n​bsp;RBM,-.0021; NGM, -.018; HOM, +.0019

·       EIA Report Estimates (API): crude oil, -1.7 (-1.1); Gasoline, -0.6 (-2.7); Distillates, -0.9 (-1.9).  Estimates for ethanol prod. avg. 0.998 mil barrels/day (range 0.985-1.012).  Avg. est. for ethanol stocks is 21.3 mil barrels (range 21.0-21.7)

·       On Tuesday, cash ethanol markets were mostly weaker: Chicago was quoted at $1.4775, down $0.02625; Basis to Chicago—New York, +9 ¾; Gulf, +8 ½; Dallas, +10 ¼; Tampa, +23 ¾; and LA, +30 ¼

·       On Tuesday, ethanol RINs firmed: 2017’s up 1 ½ to 30-31 ½; and 2018’s increased ¾ to 35 ½-38 ½

·       The May RBOB/May ethanol spread slipped $.0068 on Tuesday, to +$.6269/gallon

  LIVESTOCK/POULTRY                       ​;              

• Choice boxed beef values increased $2.54 on Tuesday to $217.65, and are up $5.52 vs. a week ago
• April live cattle futures on Tuesday traded to $122.20—the highest price since March 15—but closed $0.625 lower
• USDA mandatory pork carcass cutout value firmed 28-cents on Tue. to $67.25, but is still down 64-cents v. last week
• CME Lean Hog Index gained $1.12 on Tuesday to $59.00.  May futures fell $0.55 but are still $8.45 above the index

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