HIGHLIGHTS
· MARKET TREND— Lower: CU: down $.0575; SQ: down $.0925; WU: down $.0625; KWU: down $.0525
· MACRO: Global equity markets are mixed ahead of the Fed Chairperson Yellen’s congressional remarks. ASIA—Mostly lower: Nikkei, -0.48%; Shanghai, -0.16%; Hang Seng,+0.64%. EUROPE: Firmer—DAX, +0.66%; FTSE, +0.92%; CAC,+0.89%. WALL STREET—Futures are firmer—DOW, +25; S&P, +3.75; NAS, +13.75. EXTERNALS: $ Index: +.073 @ 95.495; Aug Gold: +$3.10 @ $1,220; Sep crude: +$.68 @ $45.91/bl. Del’ys: SBM, 68; SBO, 43; RR, 58; C, 440; ETOH, 0; HRW, 113; SB, 160; SRW, 38
· T-storm Weather: Scattered thunderstorms shift southward and end over today-Friday across the southern halves of the U.S. Corn Belt and Plains; some areas will benefit from rain, but others will likely need more or much more (especially in/near the northern Plains). Drying begins as these thunderstorms end over Wednesday-Friday. Temperatures vary within a seasonable to hot range over the next few days, then briefly turn cooler before heat envelops most areas over Sun.-Tue. (July 16-18)
· CU, down $.0575 @ $3.96; CZ, down $.0575 @ $4.0850. The funds bought 7 K on Tuesday
· SQ, dn $.0925 @ $10.20; SX, dn $.0950 @ $10.3375. Fund activity: Bot 7 SB, 7 SBM, 3 SBO. Board Crush: $.88, -2; LY, $.70
· WU, down $.0625 @ @$5.4675; WZ down $.0675 @ $5.6975. Fund buying totaled 2 K yesterday
CORN/SORGHUM
· USDA WASDE report 11:00 am CDT: Avg. trade guess 16/17 U.S. corn carryout, 2.336 bbu; avg. guess 17/18, 2.131 bbu
· USDA WASDE report: Avg. guess for 16/17 Brazil corn, 97.5 MMT (range 97.0-99.0); Argentina, 40.0 (39.0-41.0)
· ATI Research: Near-term U.S. corn export forecast: 45.5 mbu/week, range of 41.9-49.1; bias is at the low end of range
· T-storm Weather: Significant rainfall is unlikely across U.S. corn production areas for at least one week startingFriday as upper-level high pressure blocks energy or suppresses humidity
· Ethanol margins: $0.12 per gallon—down vs. $0.14 last week and below $0.51 in 2016. EIA report at 9:30 am CDT
SOYBEANS/WHEAT
· USDA WASDE report: Avg. trade guess 16/17 U.S. soybean carryout, 0.434 bbu; avg. guess 17/18, 0.483 bbu
· USDA WASDE: Avg. guess 16/17 Brazil soybeans, 114.0 MMT (range 113.3-115.0); Argentina, 57.7 (57.0-58.0)
· T-storm Weather: Proportion of U.S. soybean production with drier-than-normal topsoil moisture is elevated at 35%
· USDA WASDE report: Avg. trade guess 17/18 U.S. all wheat carryout, 0.879 bbu (range 0.757-0.957)
· USDA Crop Production report: Avg. guess for 2017 U.S. all winter wheat production is 1.256 bbu (range 1.200-1.281); avg. guess for 2017 U.S. Other Spring production is 0.414 mbu (0.305-0.490)
ENERGY
· Higher: CLU17, +$0.68 @ $45.91; EBU, +$0.63 @ $48.15;EBU-QCLU, -.07; RBU, +.0106; NGU, -.035; HOU, +.0136
· EIA Report Estimates (API): crude oil, -3.2 (-8.1); Gasoline, +0.3 (-0.8); Distillates, +1.0 (+2.1)
· A mixed trend was noted in cash ethanol markets on Tuesday: Chicago up 5/8; New York and Dallas gained ¼; Gulf firmed ¾; Tampa steady; but LA was 1 ½ lower at $1.75 per gallon
· Ethanol RINs up slightly on Monday: 2016’s and 2017’s increased ½ to 70 ½-72
· The Aug RBOB/Aug ethanol inverse eased $.0096 to-$.04270/gallon
LIVESTOCK/POULTRY  
·   Choice boxed beef values were $2.30 lower on Tuesdayat $215.24, and are down $7.65 vs. a week ago
· Since June 12, choice boxed beef values have declined $37.28 (14.8%)
· USDA mandatory pork carcass cutout firmed 27-cents on Tue. to $104.83, and is up $1.21 compared to last week
· CME Lean Hog Index gained $0.13 on Tue. to $92.59. July futures firmed $0.675 but are still $0.44 below the index
Sources: Bloomberg, Dow Jones, AP, DTN, T-storm Weather