HIGHLIGHTS

• MARKET TREND—Higher: CN, +$.0125; SN, +$.0425; WN, +$.0650; KWN, +$.0775 
• MACRO:  Trader concerns linger but markets march onward, more or less; G-7 leaders will meet Friday with lively discussion on U.S. steel and aluminum tariffs likely.  Asia—Higher: Nikkei, +0.38%; Shanghai, +0.05%; Hang Seng, +0.51%. EUROPE: Higher: DAX, +0.38%; FTSE, +0.35%; CAC, +0.05%.  WALL STREET: And, futures have a decidedly firmer tone: DOW, +99; S&P, +5.50; NAS, +11.75. EXTERNALS: July crude: -$0.25 @ $65.27; Aug Gold: -$3.10 @ $1,299; Dec $ Index,-.291 @ 92.650

·       T-storm Weather: In the U.S., upper-level high pressure unsuccessfully attempts to expand the next 7-10 days, instead allowing a wave of energy to pass and trigger thunderstorms each day, thereby preventing a heat wave from unfolding.  Thunderstorms result in varying areas each day, culminating in at least 1.25"-2.50" for most corn, soybeans, and spring wheat.  The first round of thunderstorms affects the eastern Dakotas and northwest Corn Belt today, then further to the south and east Thu.-Fri.

·       CN, up $.0125 @ $3.85; CU, up $.0125 @ $3.9425.  The funds were buyers Tuesday, booking 6 K                  

• SN, up $.0425 @ $10.0550; SQ, up $.0425 @ $10.1075. Funds: Sold 2 SB, 2 SBM; 2 SBO.  Board Crush: $1.47 , -$.03; LY: $.84
• WN, up $.0650 @ $5.1650; WU, up $.0650 @ $5.34.  Fund buying yesterday: 4 K                                   

CORN/SORGHUM

<​li> T-storm Weather: In the U.S., a stronger system passes to the north next week & dislodges a seasonably-cooler air mass for a wide area by June 15.  At least some rain will accompany the seasonably-cooler air mass over June 15-19

·       Consultant: Brazil corn production estimate is lowered by 1.0 MMT to 81.0 MMT with a lower bias going forward.  Recent cold weather across safrinha (double crop) corn was not good for late-developing crop

• ATI Research: The 5-year avg. for U.S. corn emergence increases approx. 9% from June 3-10 to 92%

·       Ethanol margins: $0.28 per gallon—up vs. $0.26 last week but below $0.32 in 2017.  EIA report at 9:30 am CDT

SOYBEANS/WHEAT

·       Consultant: Brazil soybean crop estimate is increased by 1.0 MMT to a record 117.0 MMT

• ATI Research: The 5-year avg. for U.S. soybean emergence increases approx. 17% fromJune 3-10 to 69%

·       ATI Research: U.S. export demand remains very weak.  For example, combined unshipped export sales of old-crop (2017/18) and new-crop (2018/19) are only 155 mbu, which is down 28% vs. the 5-year average and a 9-year low

• T-storm Weather: Slightly unfavorable conditions for Ukraine wheat exist due to much drier than normal conditions

ENERGY

·       Mixed: CLN18, -$.25 @ $65.27; EBQ, +$.49 @ $75.87; EBQ-QCLQ, +$0.72; RBN,-.0011; NGN, +.010; HON, +.0095

·       EIA Report Estimates (API): crude oil, -1.3 (-2.0); Gasoline, -0.6 (+3.8); Distillates, +0.7 (-0.9).  Estimates for ethanol prod. avg. 1.050 mil barrels/day (range 1.035-1.062).  Avg. est. for ethanol stocks is 21.4 mil barrels (range 21.0-21.6)

·       Yesterday, cash ethanol markets were slightly firmer: Chicago was quoted at $1.4375, up ½;  Basis to Chicago—New York, +$0.1075; Gulf, +$0.0925; Dallas, +$0.0675; Tampa, +$0.1975; and LA, +$0.2375 

·       Ethanol RINs were again weaker: 2017’s, down 1 to $.1550-$.18; 2018’s were 2 lower at $1950-$.22

·       The July RBOB/June ethanol spread lost $.0482, closing at +$.6442/gallon

  LIVESTOCK/POULTRY              &​nbsp;                      <​/wbr>

• Choice boxed beef values increased a penny on Tuesday to $227.58 and are up 2-cents compared to last week
• June live cattle futures on Tue. closed at $107.20—up $2.475 vs. Mon. and the highest settlement price since May 11
• USDA mandatory pork carcass cutout value was $1.10 higher on Tuesday at $77.47 and is up $1.95 vs. a week ago
• CME Lean Hog Index increased $0.65 on Tue. to $71.73.  June futures fell $1.05 but are still $4.795 above the index

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