HIGHLIGHTS
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MARKET TREND—Lower: CN, -$.0275 SN, -$.0650; WN, -$.1025; KWN, -$.0975
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MACRO: Italy’s political crisis deepens; Shanghai lower after White House announces plans to apply new tariffs to Chinese imports. Asia—Lower:Nikkei, -1.52%; Shanghai, -2.53%; Hang Seng, -1.40%. EUROPE: Slightly firmer: DAX, +0.38%; FTSE, +0.12%; CAC, -0.54%. WALL STREET: Futures look to open higher: DOW, +118; S&P, +12.00; NAS, +24.50. EXTERNALS: June crude: +$0.08 @ $66.81; Aug Gold: -$2.20 @ $1,302; $ Index: -.334 @ 93.560
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T-storm Weather: 3 systems converge on the central U.S. the next five days, producing generalized totals of 0.50” to 1.50”. Temperatures remain unseasonably mild, then turn considerably cooler in most areas. The cooler period will be accompanied by drier air that limits rainfall coverage and amounts to keep most areas only near or drier than normal over June 5-12, but some t-storms are probable because a few waves of energy pass.
· CN, dn $.0275 @ $3.9725; CU, dn $.03 @ $4.06. The funds turned heavy sellers to begin with week, 20 K
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SN, dn $.0650 @ $10.24; SQ, dn $.07 @ $10.28. Funds: Sold 6 SB, 2 SBM; 3 SBO. Board Crush: $1.49, +$.09; LY: $.88
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WN, dn $.1025 @ $5.2625; WU, dn $.1075 @ $5.4275. The funds opened the week selling 5 K
CORN/SORGHUM
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ATI Research—reduced Black Sea production ideas along with smaller 2017 S Am crop boosts 18/10 exports 213 mbu. This change along with a 2 bpa increase in yield estimate/higher feed/residual reduced c/o 229 to 1.473 billion bushels
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Corn is rated at 79% G/E, versus 65% LY and the approximate 5 year average of 69%. Trade expectations were A to B%
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Corn inspections were again strong at 67.1, well above the implied AMS weekly rate of 52.0
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T-storm Weather: from now through Sunday, 1/2 to 1 1/2 “ can be expected for much of the Central U.S. Beyod next week, below normal humidity will potentially limit rainfall amounts with a core of heat in the S/SW U.S.
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Private estimates of the Brazil crop continue to work lower with 79-82 typical of most
SOYBEANS/WHEAT
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Spring Wheat planting reaches 91%, versus 79% LW; 95% LY and the average of 89%. Ratings were 38% G/E, a 2 point improvement from LW and versus 50% LY
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Soybean planting remains well ahead of average: 77% versus 65% LY and 62% for the 5-year pace
· Soybean inspections of 21.2 were near the low end of the 18-29 mbu range and 5 less than the implied rate. China did lift 7.5 but trade concerns remain as the White House intends to impost tariffs on $50 billion of Chinese goods
· T-storm Weather: June 5-12th likely to see little or no rainfall for much of the TX-OK-KS region
ENERGY
· Firmer: CLN18, +$.08 @ $66.81; EBN, +$.29 @ $75.68; EBN-QCLN, +$0.19; RBN, +.0078; NGN, 0; HON, +.0077
· On Tuesday, cash ethanol markets were weaker: Chicago was quoted at $1.47 ¾, off 0.0150; Basis to Chicago—New York, +10 ¾; Gulf, +10 5/6; Dallas, +5 3/8; Tampa, +18 1/6; and LA, +23 1/8
· Yesterday, ethanol RINs slipped with 2017’s off 1 ¾ to 17 -17 ½; 2018’s were 1 ½ lower at 25-27
· The June RBOB/June ethanol spread lost $.0233 on Tuesday, closing at +$.65710/gallon
LIVESTOCK/POULTRY   ; ;
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Choice boxed beef values were 13-cents firmer on Tuesday, but are down $1.79 compared to last week
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5-Area Weekly Weighted Average Steer price down $4.67 v. last week at $110.06/cwt, and down $21.44 v. last year
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USDA mandatory pork carcass cutout value value gained $1.05 on Tue. to $75.52 and is 33-cents higher vs. last week
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CME Lean Hog Index firmed $0.02 on Tue. to $69.46. June futures gained $1.475 and are $6.215 above the index