HIGHLIGHTS
· Market Trend: Corn, Up ½ to 2+ (CK); Soybeans, 2-3 Lower; Wheat, CHI, Down 3-4
· Mixed results in Asia this morning—the Hang Seng rose 1% after People’s Bank of China introduces programs to boost mortgage lending in response to a weakening property market; Shanghai and the Nikkei both close .14% lower. Europe is unanimously weaker with the FTSE .13% lower; the DAX, down .16% and the CAC 40, off .19%. The trend is likely to continue as Wall Street opens: futures are lower with the S&P, -2.5 the Dow, -11 and the Nasdaq, -5.75. Gold is $7.25 to the plus side; energy futures are all higher and the $ Index is trading .080 weaker at 80.245
· T-Storm Weather: Widespread rainfall of 1.00 – 2.00” affects the eastern Corn Belt and Delta intoThursday. Cool to unseasonably-cool weather generally dominates elsewhere. Though well-organized rainfall does not occur in these areas, a couple pockets of light showers are likely. Heat returns to the southwest Plains this weekend, and above-average warmth (maximums in 70s-80s) gradually envelops all areas by early next week as coolness retreats. Warmth also causes a stormy pattern to develop, thereby closing a planting window after 2-4 days of improved conditions
· May Corn Up $.0225 at $5.0550; July Up $.0050 at $5.0325. The funds bought 2 K Tuesday
· May SB NA; July Down $.0325 at $14.8050. The funds bought 7 K SB, 5 K SBM along with 3 K SBO
· May Wheat NA; July Down $.0375 at $7.0550 The funds sold 6 K yesterday
CORN/SORGHUM
· U.S. corn planting progress for week ending May 18 was 65% in 2013 and the five-year average (2009-2013) is 76%; milo planting progress was 34% in 2013 with the five-year average at 39%
· ATI Research: Look for U.S. corn exports to avg. 43mbu/week the next month; 30-33 Gulf, 7-10 PNW and 4-5 Interior
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Ethanol margins have rebounded: $0.75 per gallon vs. $0.53 last week. EIA report out today at 9:30 AM CDT
· Corn deliveries: 7
SOYBEANS/WHEAT
· U.S. soybean planting progress for week ending May 18 was 21% in 2013 & the five-year average (2009-2013) is 38%
· ATI Research: Expect near-term U.S. soymeal exports to avg. about 10 K higher than last year & 20 K above 5-year avg.
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T-storm Weather: A spring wheat planting window likely opens within May 17-21 following 5-7 days of dry weather
· ATI Research: U.S. all wheat exports are forecast to remain 20-25mbu per week throughout the remainder of May
· Soy complex deliveries: 0 SB; 50 SBM; 104 SBO; Wheat: 0 KC; 100 CHI
ENERGY
· Futures are all positive: QCLM14, +$0.24 at $101.94; QRBM, +$0.0098; QNGM, +$.023; andQHOM, +$.0037
· Cash ethanol markets edged lower Tuesday: Chicago and Gulf were off 2; New York slipped a penny; Tampa and Dallas dipped 3; and LA was down 1 at $2.40 ½ per gallon
· EIA estimates (API): Crude, 0.0 mb (+0.9); gasoline, +0.1 (-2.0); distillates, +0.6 (+0.9)
· RINs slightly higher: 2012’s up 1 to 46 ½-47; 2013’s gained 1 to 47 ½-48; and 2014’s climbed 1 ½ to 44 ¾-47 ½
· The June RBOB/June ethanol spread added another 2+ cents, settling at $.7972/gallon
LIVESTOCK/POULTRY   p>
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Choice boxed beef values gained $2.79 yesterday and have increased $3.35 over the last two days
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Cash cattle are quiet with feedyards asking $148, but no packer bids reported. Cash cattle traded LW at mostly $146
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After increasing $1.98 on Monday, the USDA mandatory pork carcass cutout value fell $1.81 yesterday
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The USDA’s Iowa/Minnesota average cash lean hog price gained $1.76 yesterday to $110.12
Sources: Bloomberg, Dow Jones, AP, T-storm Weather