HIGHLIGHTS
-
MARKET TREND—Mostly higher: CN, +$.0150; SN, -$.0050; WN, +$.1150; KWN, +$.1025
-
MACRO: Some follow-through after yesterday’s strong performance; jobless claims out at 8:30 EDT; consumer credit #’s later in the day; higher interest rate expectations. Asia—Mostly higher: Nikkei, +0.87%; Shanghai, -0.20%; Hang Seng, +0.81%. EUROPE: Mostly higher: DAX, +0.09%; FTSE, -0.12%; CAC, +0.24%. WALL STREET: Futures, mostly higher: DOW, +33; S&P, +0.25; NAS, -2.25. EXTERNALS: July crude: +$0.36 @ $65.09; Aug Gold: +$1.80 @ $1,303; Dec $ Index, -.319 @ 92.405
· T-storm Weather: Waves of energy and a full-blown system move across the central U.S. over the next 7 to 10 days. Areas of thunderstorms result each day within varying areas of the central U.S., producing widespread rainfall of 1.50" to 3.00" with the probable exception of the southern Plains and Delta. Thunderstorms begin in earnest today in / near Iowa and Nebraska, then across a wider area from Friday forward
· CN, up $.0150 @ $3.7975; CU, up $.0175 @ $3.8950. The funds sold an estimated 8 K at midweek on a decent weather outlook
-
SN, dn $.0050 @ $9.9375; SQ, dn $.0050 @ $9.9925. Funds: Sold 6 SB, 3 SBM; 2 SBO. Board Crush: $1.46 , -$.01; LY: $.85
-
WN, up $.1150 @ $5.3125; WU, up $.1150 @ $5.49. Fund buying yesterday: 10 K, mostly on Black Sea weather worries
CORN/SORGHUM
· July 2018 corn futures on Wednesday closed at $3.78 ¼--the lowest settlement price for the contract since Feb. 9
· Export Sales to be released at 7:30 am CDT. Trade expects 24-35 mbu for 17/18 corn
-
T-storm Weather: In the U.S. the current system passes later next week, marking the start of a cooler period June 15-20. Some rain accompanies cooler temps, with best chances in the period further to the south (including the Delta)
-
Ethanol grind: Total of 1,041,000 barrels/day for week end June 1—unchanged v. prior week but up 4.2% v. last year
-
Consultant: Argentina corn crop est. is steady at 32.0 MMT with a neutral to lower bias; harvest is 36.9% complete
SOYBEANS/WHEAT
· Export Sales report. Trade expects 7-18 mbu for 17/18 soybeans; soymeal, 50-350 K MT; soyoil, 5-25 K MT
· Consultant: Argentina soybean crop est. is unch at 36.0 MMT with a neutral to lower bias; harvest is 89.3% complete
· T-storm Weather: Thunderstorms focus on/near Nebraska, the eastern Dakotas & northwest third to half of Corn Belt today. Thunderstorms affect the same areas plus rest of the Corn Belt Fri.-Sun. as additional waves of energy pass
· Export Sales report. Trade expects (11) to (4) mbu for 17/18 all wheat and 9-17 mbu for 18/19
· T-storm Weather: 1.50”-3.00” of rain for most U.S. spring wheat next 7-10 days; highest coverage across SE third of N Dakota & eastern two-thirds of S Dakota. Dry but cool for southern 50% of Russia’s winter wheat for at least 7 days
ENERGY
· Higher: CLN18, +-$.36 @ $65.09; EBQ, +$.45 @ $75.81; EBQ-QCLQ, +$0.11; RBN,+.0161; NGN, +.018; HON, +.0119
· On Wednesday, cash ethanol markets were weaker: Chicago was quoted at $1.42, down $0.0175; Basis to Chicago—New York, +$0.12; Gulf, +$0.10; Dallas, +$0.075; Tampa, +$0.205; and LA, +$0.22
· Ethanol RINs were significantly firmer on Wednesday: 2017’s up 3 ¼ to 16 ½-23 ½; & 2018’s were 5 ¾ higher at 23-30
· The July RBOB/July ethanol spread retreated $.0402, closing at +$.6360/gallon
LIVESTOCK/POULTRY  
-
Choice boxed beef values declined 61-cents on Wednesday to $226.97 and are $1.71 lower vs. a week ago
-
June live cattle futures on Wed. closed at $108.30—up $1.10 vs. Tue. and the highest settlement price since March 22
-
USDA mandatory pork carcass cutout value eased 42-cents on Wed. to $77.05 but is still $2.24 higher than last week
-
CME Lean Hog Index firmed $0.77 on Wed. to $72.50. June futures gained $1.65 and are $5.675 above the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather