HIGHLIGHTS
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MARKET TREND—Mostly Higher: CN, +$.0050; SN, -$.0575; WN, +$.02; KWN, +$.0275.
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MACRO: Ideas the summit with North Korea may be put on hold versus solid retail sales & rising interest rates. Asia—Mostly Lower: Nikkei, -0.44%; Shanghai, -0.70%;Hang Seng, -0.23%. EUROPE: Mostly Higher: DAX, +0.23%; FTSE, +0.02%; CAC, -0.08%. WALL STREET: Futures are mostly weaker: DOW, -14; S&P, -0.50; NAS,+1.00. EXTERNALS: June crude: +$0.03 @ $71.34; Aug Gold: +$0.70 @ $1,297; $ Index: +.199 @ 92.935
· T-storm Weather: In central U.S., except for a few thunderstorms across the southeast third through today, most areas will be dry & mild into at least Thu. Rain follows across northwest half of central U.S. Thu.-Sat., initially in the Dakotas & Nebraska, then spreading into Iowa & Minnesota Fri.-Sat. Some rain then reaches the central & eastern Corn Belt, but totals will mostly be light. Separately, a large system clips the eastern Corn Belt with significant rain late in the week & weekend, especially across Ohio
· CN, up $.0050 @ $4.0275; CU, up $.0075 @ $4.1125. The funds bought 8 K yesterday
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SN, dn $.0575 @ $10.13; SQ, dn $.0525 @ $10.1675. Funds: Sold 5 SB, 7 SBM & 1 SBO. Board crush: $1.65, -14; LY: $.84
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WN, up $.02 @ $4.9550; WU, up $.0150 @ $5.1125. Fund buying: 2 K
CORN/SORGHUM
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ATI Research: The 5-year avg. for U.S. corn planting progress increases approx. 18% fromMay 13-20 to 81%
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T-storm Weather: In Brazil, 1.00"-2.00" of rain affects southern third of second-crop (safrinha) corn the next 24 hours, but more-so Fri. when strong cool front passes. A few thunderstorms also occur to the north, but unlikely heavy rain
· Consultant: Argentina corn crop est. steady at 32.0 MMT with a lower bias going forward. Although recent heavy rain has slowed corn harvest to a crawl (~33% complete nationwide), yield losses so far are not believed to be substantial
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Ethanol margins: $0.30 per gallon—up vs. $0.26 last week and above $0.24 in 2017. EIA report at 9:30 am CDT
SOYBEANS/WHEAT
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ATI Research: The 5-year avg. for U.S. soybean planting progress increases approx. 18% from May 13-20 to 44%
· Consultant: Argentina soybean crop estimate is lowered 1.0 MMT this week to 37.0 MMT; lower bias going forward
· T-storm Weather: A few showers impact un-harvested Argentina soybeans next 10 days, but most areas will be dry
· ATI Research: The 5-year avg. for U.S. spring wheat planting progress increases approx. 13% from May 13-20 to 80%
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CBT July 2018 wheat futures on Tue. fell to $4.86 ¼—lowest price since April 25—but closed up $0.02 ¼ at $4.93 ½
ENERGY
· Mixed: CLM18, +$.03@$71.34; EBN, -$.29@$78.14; EBN-QCLN, -$0.28; RBM, +.0045;NGM, -.018; HOM, -.0049
· EIA Report Estimates (API): crude oil, -0.4 (+4.9); Gasoline, -1.2 (-3.4); Distillates, -1.4 (-0.8). Estimates for ethanol prod. avg. 1.054 mil barrels/day (range 1.045-1.060). Avg. est. for ethanol stocks is 22.1 mil barrels (range 21.8-22.2)
· On Tuesday, cash ethanol markets were higher: Chicago was quoted at $1.4675, up $0.01125; Basis to Chicago—New York, +12; Gulf, +10 ¼; Dallas, +3 ¾; Tampa, +16 ¾; and LA, +23 ½
· On Tuesday, ethanol RINs were weaker: 2017’s declined 2 to 27 ½-28 ½; and 2018’s eased 1 ¼ to 33-34
· The June RBOB/June ethanol spread snugged in $.0084 yesterday to +$.71380/gallon
LIVESTOCK/POULTRY    
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Choice boxed beef values eased 48-cents on Tuesday to $231.64, but are still 71-cents higher compared to last week
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June live cattle futures on Tuesday closed at $102.975—the lowest settlement price for the contract since April 11
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USDA mandatory pork carcass cutout value increased 55-cents on Tue. to $73.38, and is $2.75 higher than a week ago
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CME Lean Hog Index firmed $0.58 on Tuesday to $65.23. June futures fell $1.425 but are still $9.495 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather
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