HIGHLIGHTS

• TRENDS—Mixed: CN, -$.01; SN, -$.06; WN, +$.0450; KWN, +$.0375 
• What caught my eye: trade expecting “routine’ corn sales . . . we will see if today’s numbers reveal much in the way of buyer concern over rising prices—fewer planted acres and possible yield drag
• Markets working higher in spite of trade worries.  Asia: Mostly lower--Nikkei, -0.01%; Shanghai, -1.17%; Hang Seng, +0.26%.  EUROPE: Higher—DAX, +0.72%; FTSE, +0.59%; CAC, +0.64%.  WALL STREET—Upward, onward--DOW,+62; S&P, +7.25; NAS, +25.00.  EXTERNALS: Aug crude: +$0.21 @ $51.84;Gold:  +$6.90 @ $1,341; $ Index: -.090 @ 97.23
• T-storm Weather: Over Thu.-Sat., a large system wobbles across the southern U.S., producing a swath of heavy rain from / near Oklahoma through and the Delta where 1.00” to 2.00” falls.  Rain is also expected in the southern third of the Corn Belt where 0.50” to 1.00” falls, but leaving the northern two-thirds dry.  Scattered thunderstorms Sun.-Mon. then affect the northwest third to half of the central U.S, with 0.25” to 0.75” across the Dakotas and northwest third of the Corn Belt
• CN, dn $.01 @ $4.1375; CU, dn $.01 @ $4.2325.  Wednesday, more favorable weather outlook = funds sell 20 K              
• SN, dn $.06 @ $8.6375; SQ, dn $.0625 @ $8.70.  Funds: Sell 10 SB, 6 SBM, 5 SBO.  Board Crush: $1.29, +2; LY, $1.46
• WN, up $.0450 @ $4.9525; WU, up $.0350 @ $5.0125.  Funds sell 15 K—corn weakness & moderating weather        

 

CORN/SORGHUM

·       Export Sales to be released at 7:30 am CDT.  Trade expects 20-31 mbu for 18/19 corn

• T-storm Weather: Unseasonable coolness for U.S. Midwest begins June 9-10 & lasts at least 5 days; temps avg. 5°F to 10°F below normal with highs mostly in 70s & lows in 40s-50s.  Some showers & thunderstorms accompany coolness
• Ethanol grind: Total of 1,044,000 barrels/day for week end May 31—down 13,000 v. prior week but up 0.3% v. 2018
• Consultant: Argentina corn crop estimate is steady at 49.0 MMT with a neutral bias; harvest is 37.4% complete

SOYBEANS/WHEAT

·       Export Sales report.  Trade expects 7-18 mbu for 18/19 soybeans; soymeal, 100-250 K MT; soyoil, 8-25 K MT 

• T-storm Weather: Unseasonable coolness for U.S. Midwest begins June 9-10 & lasts at least 5 days; temps avg. 5°F to 10°F below normal with highs mostly in 70s & lows in 40s-50s.  Some showers & thunderstorms accompany coolness

·       Consultant: Argentina soybean crop est. is unch at 56.0 MMT with a neutral to slightly higher bias; harvest at 90.7%

·       Export Sales report.  Trade expects (4) to 7 mbu for 18/19 all wheat and 4-15 mbu for 19/20

• T-storm Weather: Dry & mild weather occurs for much of U.S. & Canada spring wheat the next 5-7 days, then wetter.  Very warm & dry conditions persist for winter wheat in western Russia next 7-10 days, but soil moisture is adequate  

ENERGY

·       Firm: CLQ19, +$0.01 @ $51.84; EBQ, +$0.37 @ $61.00; EBQ-QCLQ, +.32; RBQ, +.0042; NGQ, +.001; HOQ, -.0017

·       Chicago ethanol dropped $.04 to $1.4775/gallon; basis values were firmer: New York, +$.0225 @ $.1475; Gulf, +$.02750 @ $.1175; Dallas, +$.02 @ $.1025; Tampa, +$.0205 @ $.2125; LA, +$.0050 @ $.2325  

·       Ethanol RINs were higher:  2018’s, +.3750 @ 10 -10 ¼; 2019’s, +.1250 @ 13 ¾ - 14 ¼                                                             &n​bsp;            

·      ​ The July RBOB/June ethanol spread stabilizes, widens $.0036 yesterday to+$.2148/gal

LIVESTOCK/POULTRY                     ​;                  

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• Choice boxed beef was 89-cents lower on Wednesday at $222.110 and is down $1.42 compared to a week ago
• Cash cattle bids of $113 to $114 per cwt live basis and $183 dressed developed on Wednesday across the North

·       USDA mandatory pork carcass cutout value eased 33-cents on Wed. to $81.92 and is $1.14 lower versus last week

·       CME Lean Hog Index declined $0.23 on Wed. to $80.67.  June futures fell $1.275 and are now $0.82 below the index  

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