HIGHLIGHTS

• MARKET TREND—Lower:  CK, -$.0475; SK, -$.13; WK, -$.0875; KWK, -$.1725
• MACRO: Trade tensions weigh on equity futures 45 U.S. trade associations urge the White House not to invoke tariffs on China, citing damage to the economy and consumers.  Asia: Sort of higher:  Nikkei, -0.90%; Shanghai, +0.30%; Hang Seng, +0.04%.  EUROPE: Weaker: DAX, -0.95%; FTSE, -1.26%; CAC, -0.69%.  WALL STREET:  Futures sharply lower—DOW, -145; S&P, -14.75; NAS, -89.50.  EXTERNALS: $ Index:-0.162 @ 90.150; Apr Gold: -$0.30 @ $1,312; Apr crude: -$.23 @ $62.11

·       Weather: In Argentina, scattered rain occurred over the weekend but reported amounts were light over central crop areas.  Dry weather is forecast across key growing areas today & into Tue.  Temps are projected to be near to above normal today-Tue., & near to above normal on Wed.-Thu.  In southern Brazil, episodes of scattered showers and thunderstorms are forecast today-Tue.  Light to moderate amounts are expected.  Temps are forecast be variable today-Tue., & near to below normal on Wed.

·       CK, down $.0475 @ $3.78; CN, down $.0475 @ $3.78.  Fund selling was estimated at 8 K on Friday      

• SK, dn $.13 @ $10.3650; SN, dn $.1325 @ $10.47. Funds: Bot 5K SB, 2K SBM, 0K SBO. Board crush:  $1.23, -5; LY: $.79
• WK, down $.0875 @ $4.59; WN, down $.0825 @ $4.7675.  The funds also sold 8 K of wheat—precip outlook              

CORN/SORGHUM

• May 2018 corn on Friday closed at $3.82 ¾, which was down $0.07 ¾ compared to the previous Friday and the lowest daily settlement price for the contract since Feb. 28

·       Private estimates of Argentina corn production continue to decline with some suggesting an additional reduction of 2.0 MMT to as much as 6.0 MMT could be seen from this month’s updated USDA estimate of 36.0 MMT

·       Export Inspections released at 10 am CDT: Corn 57.0 mbu needed; 54.2 last week.  Milo—4.8 needed; 7.6 last week

·       Early trade estimates for next week’s USDA Grain Stocks report suggest corn inventories could be near year ago levels

SOYBEANS/WHEAT

• November 2018 soybean futures last week traded to $10.24 ¼, which was the lowest price for the contract since Feb. 22 but closed at $10.41 on Friday.  That was $0.11 higher than the previous Friday

·       Private estimates of Argentina soybean production continue to decline with some suggesting an additional reduction of 3.0 MMT to as much as 7.0 MMT could be seen from this month’s updated USDA estimate of 47.0 MMT

·       Export Inspections released at 10 am CDT: Soybean 24.2 mbu needed; 33.4 last week

·       Export Inspections released at 10 am CDT: Wheat, 20.0 mbu needed compared to 14.3 last week

• KW July 2018 wheat futures on Friday closed at $5.16 ½, which was $0.20 ¾ lower compared to the previous Friday

ENERGY

·       Lower: CLJ18, -$.23 @ $62.11; EBK, -$.17 @ $66.04; EBK-QCLK, +$0.07; RBJ, -.0095;NGJ, +.004; HOJ, -.0022

·       On Friday, cash ethanol markets were mostly weaker: Chicago was quoted at $1.46625, down $0.01375; Basis to Chicago—New York, +11 ¼; Gulf, +11 ¼; Dallas, +5 ¼; Tampa, +18 ¾; and LA, +22 ¾

·       On Friday, ethanol RINs fell: 2016’s off 1 ¼ at 38-40; 2017’s declined 1 ¼ to 40-42; and 2018’s eased 1 ¼ to 41-43

·       The April RBOB/April ethanol spread continues to widen, out $.0421 on Friday, to+$.4529/gallon 

  LIVESTOCK/POULTRY                                ​;     

• Choice boxed beef values firmed 60-cents on Friday to $225.59, and are up $1.45 compared to last week 
• A week-to-week increase in choice boxed beef values has been seen for 22 consecutive trading days
• USDA mandatory pork carcass cutout value fell 37-cents on Friday to $72.04, and is 77-cents lower vs. a week ago
• CME Lean Hog Index declined $0.41 on Fri. to $65.52.  April futures eased $0.275, and are $0.07 below the index

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