Corn futures ended positive with corn firm at the Gulf again and interior markets strong.  According to feed millers, Black Sea origin corn is selling at a discount of $23 a metric tonne to feed wheat in East Asia, enticing buyers to substitute wheat with corn.  South Korea’s largest animal feed miller, Nonghyup Feed Inc., got the lowest offer in a tender to import 55,000 metric tonnes of optional origin feed wheat at around $282 a tonne, basis cost and freight.  However, they cancelled the tender while noting the cheaper availability of corn.  They were able to buy two cargoes totaling 127,000 tonnes of optional origin corn.  It bought a 69,000-tonne cargo of South American or U.S. corn for arrival by October 30 at a premium basis over the December futures contract.  The current price level is roughly at $274.50 per tonne, C&F.  It purchased a cheaper cargo at $259.23 per tonne presumably from the Black Sea region by Swiss commodities trading company, Agrifert SA which is for arrival by November 15th. 
                                                                                            
Wheat futures gained after U.S. government said harvest pace is running well behind schedule.   Fund buying was estimated at 2,000 wheat contracts.  Recent rain activity in the U.S. hard red winter wheat areas along with forecasts calling for more today and Wednesday will briefly delay harvesting and raise quality concerns.  The USDA showed 11% of the winter wheat crop is harvested, lagging the 25% average for this date.  Spring wheat planting is 92% complete versus the average of 97%.  North Dakota and Montana have not yet completed the crop at 100%.  There are still about 1 million acres of the original intentions which are unplanted and now past the crop insurance dates.  Russia, which is one of the world’s leading wheat exporters, will begin this year’s wheat harvest next week.  It is running about 2 weeks earlier than average.  Meanwhile, there is talk that Informa will release its revised U.S. acreage estimates tomorrow. 
                                                              
Soybean futures ended mostly positive with the nearby benefitting from strong cash values.  The unwinding of July/November spreads put slight pressure on the July contract.  New crop beans rallied due to the slow pace of planting which was reported yesterday afternoon at 85% complete.   This is the slowest pace in 5 years with the major delays occurring in Iowa, Minnesota, Wisconsin and Missouri.  This morning the USDA reported the private sale of 240,000 metric tonnes of soybeans to China for the 2013/14 marketing year.  In their latest report, Oil World reported that global soymeal exports are inadequate to meet overall demand, primarily due to port disruptions in South America.  Port strikes have slowed the movement of soymeal and left importing countries at tight levels.  Rural workers in Sao Luis Brazil earlier today blocked roads and federal highways leading into the city in an effort to protest better working conditions.  However, the roads have been reopened. 
                                                                                     
Lean hog futures settled firmer as pork prices continue to show positive movement, thereby motivating buyers.  Pork demand has been driven by historically high beef prices along with other variables including Smithfield Food’s pending sale to a Chinese company and a virus that is affecting piglets.  Meanwhile, deferred contracts continue trading at a deep discount to nearby contracts.  According to one analyst, the board is an indication that the cash and cutout will top out over the next 2-3 weeks.  Traders are also remaining a bit cautious while noting domestic demand for pork could soften following the July 4th holiday.  The CME Lean Index for the period ending June 14th came in at 102.49, up 1.23 from the previous session.
                                           
Live cattle futures saw some earlier pressure associated with profit taking from yesterday’s strong   rally.  Prices sagged from the lack of support in boxed beef values along with the absence of cash sales.  Asking prices were running around $122-$123 in the South and $198 and higher in the North.  In yesterday’s weekly crop conditions report, the USDA showed an improvement in pasture conditions, with 52% rated good/excellent versus 49% the previous week.  For Friday’s USDA cattle on feed report analysts are expecting the percentage on feed as of June 1 at 97%, placements in May at 96%, Marketings in May at 98%.                                                                              

Corn futures rose with July gaining the most strength from tight old crop supplies reflected by strong basis bids.  Traders look for volatility to continue in the old crop/new crop spreads.  Meanwhile, ethanol bids remain positive although margins have been reduced by the dip in ethanol prices.  Some ethanol bids are pushing their bids to the September futures since they are concerned that there could be a short squeeze rally in July futures.  Following the close, the weekly crop progress report showed corn emerged at 92% versus the 5-year average at 97%.  The report reflected the crop at 64% good/excellent, up from 63% last week.  A record crop in South America, the strong dollar, decent stocks carryover and low cattle placements should keep a lid on the new crop. The Argentina Ag Ministry says the country’s corn harvest is about 80 % complete.  They still expect the crop to total 24.8 million metric tonnes compared to the USDA’s estimate of 26.5 million metric tonnes.
                                                                                  
Wheat futures ended mixed while following corn higher as a feed for livestock.  The commitments report still shows managed money net short wheat, unchanged from a week ago.  Due to rainfall in the U.S. hard red winter wheat areas, analysts are looking for delayed harvesting along with concerns over crop quality.  Weather in the lower Midwest may be too wet during the week which could also cause disease issues and slower maturation rates.  Canada’s Prairies will see rain again late this week and into the weekend.  The southern parts of the region will be the wettest this week after the north was the wettest last week.  Although some fieldwork will not be finished, a good portion of this year’s crop is already in the ground.  In addition, southeastern Canada’s winter wheat crop is rated favorably.  The USDA’s Weekly Crop Progress report showed Winter wheat headed at 89% versus the 5-year average at 91%.  Spring wheat conditions were 68% good/excellent compared to 62% good/excellent last week.  Spring wheat planting is at 92% compared to the long-term average of 97% for this period. 
                                                        
Soybean futures came under pressure with traders expecting plantings to aggressively accelerate this week.  There are also concerns that the USDA’s forecast for China’s imports of soybeans next year may be overstated.  Since the country had issues with bird flu in its poultry flocks, it could mean reduced feed demand for the world’s leading importer of soybeans.  According to NOPA, May soybean crush was 122.63 million bushels.  May soybean oil stocks were pegged at 2.469 billion pounds.  For this afternoon’s crop progress report, planting progress was at 85% compared to 91% average.  Around 64% of the crop was considered good/excellent.  Loading delays in Brazil have been magnified by a shipping accident in Santos, which adds another component to the old crop situation.  Traders in the EU say about 80,000 metric tonnes of non-GMO soymeal from India has been secured from various EU countries recently.  Prices range from $620 to $625 per metric tonne for June and July delivery.  They suggest that South American origin meal may be cheaper, but cite port congestion as the reason for the shift toward Indian origin meal. 
                                                                                    
Lean hog futures were mostly higher with the exception of July and August which retreated from last week’s surge.  Pork cutout values which were released following the close on Friday came in at $103.58, up $3.89 from Thursday.  This was the highest cutout since August 24th of 2011.  The rally in pork should help sustain packer margins and could support the cash trade this week.  Packers had cut their slaughter schedules so they are in line with the limited number of hogs available to their plants.  The CME Lean Index for the period ending June 13th came in at 101.26, up from 99.77 the previous session.
                                          
Live cattle futures recovered from earlier losses after traders saw the spike in beef today as a sign of better-than-expected weekend demand.  Buyers were also emboldened by the discount of futures to the cash market and the market’s ability to hold above Friday’s lows.  Analysts say that domestic beef demand appeared strong over the Father’s Day weekend which helped ease concerns about sluggish U.S. consumption.  Estimated week to date cattle slaughter including Saturday was 644,000 head which is the same total for the previous week but off 11,000 head versus a year ago.  The boxed beef data showed Choice $1.80 higher at $201.33 with Select quoted $.23 higher.                                                                                         

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Corn futures were on the defensive again today with the exception of the front months.  Overnight, bull spreads accounted for nearly two-thirds of total corn volume.  Traders are trying to assess demand on a hand-to-mouth basis that will play a key role in the corn market later this summer.  Gulf corn basis is $.03 firmer for delivery for the second part of June, putting it at $.85 above July futures to reflect tight supplies.  Meanwhile, participants see recent weather conditions as mostly favorable for the developing corn crop.  However, growers in the central and upper Midwest are concerned while noting lagged development of the crop along with uneven emergence.  A planned strike which is expected to begin on Saturday by Argentine farmers is supposed to last for 5 days.  In port, corn stocks are running lower than beans and shipping delays could occur if the strike is prolonged for any reason. 
                                                                                  
Wheat futures were pressured by the accelerated pace of the winter wheat harvest and the lack of meaningful export sales.  Funds were sellers of an estimated 2,000 wheat contracts.  Gulf SRW wheat basis is running steady for immediate delivery, putting it about $.45 over July futures.  Canada has favorable planting weather and global wheat production remains sufficient.  Meanwhile, total U.S. spring acreage is expected to be trimmed from the March intentions since at least 10% of the crop remains unplanted.  UK harvest is expected to be one of the lowest on record; 11 million to 12 million tonnes after the crop saw damage from the wettest fall on record along with the coldest spring in nearly 50 years.
                                                    
Soybean futures finished lower with old crop futures slightly stronger amid bull spreading associated with tight old-crop supplies.  Forecasts for additional rains over the weekend are posing concerns about planting delays although the “rain makes grain” mentality is a limiting factor.  On Monday the USDA will provide the first conditions report. Many analysts look for a fairly good number ranging between 60-70% good/excellent with the recent moisture and heat.  Yesterday net sales of soybean meal totaled144, 800 metric tonnes, with 97,700 of the total slated for the current marketing year.  Export sales for meal remain active while soybean oil bookings were 13,200 metric tonnes.  As a result of low surplus capacity, ocean freight costs have been kept low.  However, a second large maritime firm has now filed for bankruptcy and more are expected to follow.  For Monday’s NOPA soybean crush report, analysts expect the data to show 117.5 million bushels crushed in May compared to 120.1 million bushels the previous month.  
                                                                              
Lean hog futures were mostly lower on long liquidation with July seeing most of the selling pressure.  June hogs finished firmer for 12 straight sessions but traders are concerned that July and August hogs will trade at a discount to cash.  Analysts expect a peak in pork product and cash markets soon which contributed to the weaker tone.  Cash prices were lower on the National Daily Direct morning cash hog report.  The weighted average dipped $.52 to $100.86 with the range from $100 to $105 on 3,549 head reported sold.  The CME Lean Index for the period ending June 12th came in at 99.77, up from 98.76 the previous session.
                                           
Live cattle futures ended in negative territory on beef demand and disappointing sales in the cash market.  Cattle were trading in the Panhandle and Kansas at $120 on a live basis, down $2.00 from the previous week.  In Nebraska cattle traded hands at $195 dressed to major packers, also $2.00 lower from last week.  Packer margins remain in the black, but producers have less flexibility in the timing of cattle sales with the widespread use of Zilmax.  Zilmax is designed to improve production efficiencies in both steers and heifers during the last 20 days of the feeding period prior to harvest.  The USDA’s midday boxed beef data showed Choice lost $.48 at $200.15 with Select $.82 lower at $183.55 with light movement of 72 loads.

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Corn futures were lower again today in response to Wednesday’s Supply/Demand report.  Basis is steady to higher on the futures decline, with ethanol remaining the primary market for corn.  Although they have taken a hit over the past two weeks, ethanol margins remain in the black with most seeing a $.10 per gallon profit.  Weekly export sales for corn for the 2012/13 marketing year came in at 3.2 million bushels, slightly above 1.0 million bushels needed to reach the USDA’s projection.  Sales for the 2013/14 marketing year were at just 2.7 million bushels which serves as a reminder that world importers are price sensitive, and export competition abundant.  Although the weekly EIA report showed ethanol production slipped 1,000 bpd at 884,000 bpd, the report still implied current usage at a rate of 4.8 billion bushels per year.  Imports were zero again, and ethanol stocks dipped by 2.6% from the previous week. 
                                                                               
Wheat futures reversed from earlier lows as traders covered some of their previously held short positions.  Prices had initially struggled after the USDA boosted production across all classes of wheat yesterday, despite the trade anticipating a decline in HRW due to dry conditions and multiple freeze issues.  Minneapolis wheat found some support on concerns of a short crop due to planting problems in North Dakota.  The USDA cut its production estimate for Russia by 2 million metric tonnes yesterday, but it was still higher than the figure posted by private analyst SovEcon.   Earlier today, SovEcon said it is adjusting its production estimate higher to 52 million metric tonnes.  However, the figure is still below the USDA’s figure by 2 million metric tonnes.  The private analyst says it sees Russian exports in the new marketing year at 14-15 million metric tonnes.  Weekly export sales for wheat were pegged at 15.7 million bushels; above 13.7 million bushels needed each week to stay in step with the government’s forecast.
                                                  
Soybean futures extended yesterday’s losses following the USDA’s crop data.  July saw the heaviest pressure as index funds wrapped up their selling of that contract while rolling into later months.  There is still uncertainty to what soybean acres ought to be, and that leaves just a couple of weeks before they are established.   Big storms swept across the upper part of the Midwest depositing .5 to 2.0 inches across state borders between Minnesota/Iowa, Wisconsin/Illinois, Michigan, Indiana and Ohio.  The next system is supposed to materialize in Iowa over the weekend and move over the eastern Corn Belt by Tuesday and Wednesday of next week.  Weekly export sales for beans came in at just 1.23 million bushels for the 2012/13 marketing year, above -1.34 million needed each week to satisfy the USDA’s projection.  Sales for the 2013/14 marketing year were at 16.4 million bushels. 
                                                                           
Lean hog futures settled mixed on ideas that the market is approaching its seasonal high with the July 4th holiday just around the corner.  June hogs will expire tomorrow with July assuming lead-month status.  As a result, the new front month will be trading at a discount to the cash market which will make it difficult to gauge direction.  Weekly exports for pork came in at 12,100 tonnes, up from 6,600 the previous week.  The slight boost in price was due to tighter supplies.  The CME Lean Index for the period ending June 11th came in at 98.76, up from 97.96 the previous session.
                                           
Live cattle futures finished easier due to weakness in beef prices along with ideas that the supply of market ready cattle for packers is higher this week.  Losses were limited as heat in the Plains could limit weight gains short term.  Meanwhile, cash cattle dealings have been absent with some low bids circulating at $120.  Weekly export sales improved as the USDA reported beef sales at 13,100 metric tonnes, above the prior 4-week average of 6,850 tonnes.  The USDA’s midday boxed beef data showed Choice lost $1.45 at $200.75 with Select up $.61 at $185.36.  Estimated slaughter was 124,000 head giving a week-to-date slaughter of 490,000 head compared to 510,000 a year ago.

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Corn futures fell after the USDA’s data suggested that growers will plant 97.3 million acres, unchanged from its previous estimate.  That puts U.S. estimated corn yield is at 156.50 bushels per acre.  Total production was estimated at 14.005 billion bushels.  In addition, 2012/13 U.S. ending stocks are pegged at 769 million bushels versus its May estimate of 759 million bushels. The average trade estimate was at just 748 million.  The government’s estimate for imports is 25 million bushels higher, bringing it to 150 million bushels, which is a record high.  New crop corn stocks are estimated at 1.949 billion bushels compared to the previous report of 2.004 billion.  World production fell to 962.58 million tonnes versus the May estimate of 965.94.  Meanwhile, the market will begin to shift its attention to uncertain weather and the June 28 Planting Acreage report.   
                                                                         
Wheat futures closed weaker on seasonal harvest pressure and negative bias following the USDA report.  The USDA’s June All-Wheat 2013/14 Production was at 2.080 billion bushels, up from the May forecast of 2.057 billion.  The 2013/14 U.S. all-wheat carryout was pegged at 659 million bushels, down from the May estimate of 670 million but up from trade estimates of 640 million.  Prices also sagged due to forecasts for a bumper new-season crop from Australia, the world’s second leading wheat exporter.  The country is expected to boost its wheat production by 15% this year to its fourth largest crop on record.  According to the USDA, yields in India have been impacted by abnormal rains in February and March.  The new unofficial estimate for 2013/14 India production is 87 million metric tonnes, 5 million lower than the USDA’s estimate in the June WASDE report.  Since the attaché reports are not considered official, they do not have to be adopted by World Grain Outlook Board. 
                                                   
Soybean futures struggled although the report was considered neutral against trade expectations.   The weaker tone in the corn and wheat market pulled bean prices lower.  Planted acreage was estimated at 77.1 million acres with a yield estimate at 44.5 bushels per acre.  As a result, production is calculated at 3.390 billion bushels.  The USDA sees domestic stocks at the end of the 2013/14 marketing year at 265 million bushels, unchanged from its May forecast.  However, the average farm price rose by $.25 on both ends of the range.  For 2012/13, the government put U.S. stocks at 125 million bushels, also unchanged from the previous month.  It raised imports by 5 million bushels, raised the crush 25 million bushels and reduced exports 20 million.  Meanwhile, fieldwork in the U.S. will advance over the coming week but may be interrupted by rain events.  It is likely that some soybean planting will not be completed before the expiration of the insurance coverage dates.
                                                                             
Lean hog futures posted gains due to strength in the cash market and tight supplies.  Cash hogs were reported $1.00 higher at some terminal locations.  However, packers are cutting back on slaughter in an effort to improve margins.  Traders expect cash to soften as soon as retailers are done booking needs for the July 4th holiday.  This morning the government made a slight reduction in the pork production outlook with the hog price raised $.01.  The slight boost in price was due to tighter supplies.  The CME Lean Index for the period ending June 10th came in at 97.96, up from 97.48 the previous session.
                                           
Live cattle futures settled mostly lower after its inability to get above yesterday’s highs.  Losses were limited by futures discount to the cash market and positive margins for packers.  In its latest monthly forecast, the USDA raised its outlook for 2013 beef production by 1.3.  It predicts U.S. 2013 beef production at 25.52 billion pounds, up by 330 million from its previous estimate.  It also slightly trimmed its projection for average cattle prices this year to $125-$130 from $126-$131.  Cash cattle bids in the South were reported at $120 live, $4 below the bulk of asking prices.  Asking prices in Nebraska are running around $5 over June cattle on a live basis while cattle feeders in Colorado are asking $6 over.  The USDA’s midday boxed beef data showed Choice lost $.79 at $202.20 with Select up $.59 at $184.75 on a total of 155 loads.

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Corn futures settled positive with traders focused on position squaring ahead of the USDA Supply/Demand report.  July gained on a tight cash market along with short covering.  The report will be released tomorrow at 11:00 CDT.  The average analyst estimate for 2013/14 U.S. corn carryout is 1.758 billion bushels, down from May’s WASDE report of 2.004 billion. World carryout is expected to run around 150 million metric tonnes compared to 154.6 million in May.  Yesterday afternoon’s weekly USDA report showed corn plantings at 95% complete which implies that roughly 4.5 million intended acres did not get planted.  The prospects to get the needed amount planted appear unlikely, especially with the prevent plant dates long past.  However, corn emergence is showing rapid development at 85%, which is just 5% below the five-year average.
                                                                            
Wheat futures gained on buying interest ahead of tomorrow’s USDA report, although harvest pressure limited the day’s advances.  The report will be the most important for wheat, giving traders a handle on fresh domestic and world numbers.  Late yesterday the USDA reported winter wheat harvest is now 5% complete versus the 16% average for this date.  There are reports of protein readings as high as 15% for HRW that was stressed by dryness as well as some instances of heat.  The Winter Wheat crop is 82% headed compared to 86% average for this date.   Spring Wheat was reported at 87% planted, behind the 5-year average of being 96%.  Just 71% of the crop is emerged versus the average of 89% for this date.  North Dakota came in at just 77% planted with 1.5 million acres to go.  Traders expect minimal harvest gains in North Dakota from this point forward which indicates large prevent plant acres. 
                                      
Soybean futures rose on tight old crop supplies with July the primary driver as the market prices in basis across the interior.  Due to the livestock disease situation and poor profitability, Chinese imports of soybeans year-to-date are down 12.2% from a year ago.  Nevertheless, June imports are expected to be record large.  According to the weekly USDA report released after the close, plantings are at 71% complete.  This means that an estimated 22 million acres still need to be planted.  Emergence is just at 48% compared to the 5-year average at 67%.  A one week farmer strike in Argentina was supposed to begin today.  Given the short duration, it is expected to just drain export warehouses.  However, if it lasts any longer than that, it will pose more of a concern.  In his estimate, Cordonnier kept U.S. soybean acreage estimate unchanged at 77.8 million acres, but reduced his yield estimate by 1 bushel per acre to 42.5 bushels per acre.  The forecast for U.S. soybean production is at 3.2 billion bushels. 
                                                                      
Lean hog futures settled higher on a strong cash market along with ideas that China may be in the market amid tightening supplies for slaughter-ready hogs.  Firmness in cash hog values and pork prices have prompted commercial buying interest through the summer contracts.  Meanwhile, pork product prices have risen to the highest level in nearly a year, and many terminal locations were up $1.00 on the day.  The CME Lean Index for the period ending June 7th came in at 97.48, up from 91.15 the previous session.
                                           
Live cattle futures ended firmer on strong product movement and short covering.  The market also found support from futures discount to the cash market and talk of high temperatures in the Plains.  The USDA’s boxed beef data showed Choice dipped $.12 at $203.06 with Select $.86 higher at $184.30 on total sales of 138 loads.  Packers have opened with bids of $120 live in Kansas this week, signaling that they will try to save money.  However, feedlots are turning away from those bids due to the rally in the futures market.  Asking prices remain in the $124-$125 area in the south.  The cash trade will most likely develop later in the week. 

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Corn futures ended lower on long liquidation due to less than expected rain coverage in parts of the western Corn Belt.  Over the weekend, rain mostly missed key areas including eastern Iowa, southeastern Minnesota, and parts of Illinois.  Traders were eagerly awaiting this afternoon’s crop progress report since areas with further planting delays are assumed to be losing either acreage or yield potential.  The market was looking for this afternoon’s weekly USDA report to show corn planting around 95% complete which was on target with actual progress made.  The report showed the crop at 63% good/excellent, unchanged from last week.  According to a Bloomberg survey of 28 analysts, U.S. corn production is estimated at 13.820 billion bushels. 
                                                                           
Wheat futures sagged on harvest pressure and ideas that weekend rains didn’t interrupt planting as previously thought.  Losses in Minneapolis wheat were limited by expectations that some of the intended Spring Wheat crop won’t be planted, especially in North Dakota.  The progress report showed Spring Wheat planting at 87% versus the long-term average of 96% for this period.  The harvest of Winter Wheat is progressing and gradually moving north in Oklahoma, although irregular strands are a problem in Kansas and western Oklahoma.  There is the mix of some good wheat reported along with very poor wheat.  According to this afternoon’s crop conditions report, the good/excellent category for Winter Wheat is at 31%, down by 1% from the previous week.  Meanwhile, there is a strong interest in shipping new crop SRW into southern Plains feedlots to compete with scarce and expensive old crop corn. 
                                  
Soybean futures were the leader to the downside after weekend rains were lighter than expected.  Most of the market is shifting focus on soybean planting with analysts looking for the USDA progress report to show 70-75% of the crop planted compared to 57% the previous week.  According to the report, plantings are at 71% complete.  Long-term forecasts indicate ample planting opportunities to get the balance of the crop in the ground.  Temperatures across the Midwest this week are expected to run in the 90’s with most of the interior trending above average.  Next week the government will publish its first crop ratings report for beans.  Chinese markets will be closed for the next 3 days due to their extended holiday.  The Brazilian Agriculture Minister said today that the Chinese government has approved imports of three varieties of genetically modified soybeans that are of interest to Brazil.  The varieties, Intacta, RR2, PRO, CV127 and Liberty Link, help suppress pests common in Brazil that prey on the plants. 
              
Lean hog futures advanced with July limit up following strong cash prices with packers paying up for hogs.  Nearby hog futures benefitted from rumors that China is buying U.S. pork.  This week, wholesale pork bellies and ham values are supporting the cutout values more so than for the fresh pork primal cuts.  Analysts look for spot hog prices to approach highs in the next week or so.  Packer kill margins are still being pinched and there is talk that packers could restrict slaughter schedules in coming weeks.  In other news, Rabobank International said that just 37% of live hogs in China came from backyard farms in 2012.  This is down from 74% in 2001.
                                            
Live cattle futures were very quiet on light trade with lower fundamental expectations.  The market saw additional long liquidation amid consumer demand concerns and a weaker cash market.  Late Friday a small number of cattle traded hands at $122-124, down $1-$2 from the previous week.  Analysts look for further price erosion for wholesale Beef primal cuts and Choice Carcass prices in weeks ahead.  This morning’s boxed beef data showed Choice rose $1.52 at $203.09, with Select up $.35.  Weekly slaughter last week came in at 620,000 versus the same week in 2012 at 637,000.       

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Corn futures were higher on fund buying which consisted of 8,000 corn contracts.  This morning’s non-farm payroll data came in slightly better than anticipated which helped push both the stock market and the U.S. dollar higher.  Corn prices are being supported by concerns about new crop planting progress and the uncertain impact on final yield.  July futures gained due to strong industrial use despite encountering position rolling by the two largest index funds.   Forecasts are calling for warmer temperatures across the Midwest this weekend and into next week.  Meanwhile, Minnesota and Iowa remain wet, and analysts believe prevent plant acreage could be considerable this year.
                                                                          
Wheat futures were mixed while some support stemmed from concerns that the window is rapidly closing for spring wheat planting.  Slight profit taking ahead of the weekend weighed on prices.  Paris milling futures finished the week steady, but encountered some pressure from a stronger Euro and forecasts calling for an improved weather outlook next week.  The favorable weather will aid maturity of crops in France and Germany.  In Oklahoma and Texas harvest is going strong although many areas are running two weeks behind on maturity.   Meanwhile, analysts are forecasting a drop in U.S. all wheat output figure in next week’s USDA Supply/Demand report.  The average estimate is running around 2.03 billion bushels, down from the previous month’s 2.057 billion bushels.
                                  
Soybean futures ascended Friday led by gains in the November contract.  The front month saw some light pressure throughout the session as traders took profits on July/November spreads.  Interior basis levels were reported steady with some weakness noted in export channels due to sluggish export demand.  Cash merchants at the Louisiana Gulf were reporting cash basis bids $.70-$.73 a bushel above July futures, down a nickel from Thursday.  However, crush demand continues to run at a strong pace.  Meal demand from world buyers is robust and processors will likely run at a good pace until the end of June, especially with Argentina having a protein problem with new crop.  U.S. meal export commitments are 102% of the USDA forecast for the year, and would normally be at just 90% at this time. 
                                                                       
Lean hog futures found support from supply tightness with cash hogs trading steady to $1 higher today.  Both the June and July contracts are at four-month highs, and the June contract has ended higher every day following the announcement of the Smithfield Food’s sale to a Chinese company.  SEC regulators are investigating suspicious trades made following the Smithfield deal last week.  Prior to the announcement, a Thailand man profited by more than $3.2 million from trading shares of the company.  He bought call options and then boosted his profits by purchasing single stock futures.
                                          
Live cattle futures ended weaker due to softer boxed beef prices along with expectations for a weaker cash market.  Packers have raised bids in Texas to $122 live although no trade has been reported.  Also, the deli market is seeing increased competition from turkey.  The boxed beef data showed Choice lost $1.69 with Select $.83 lower.  Given cool temperatures, traders are concerned about weak demand despite profitable packer margins.  Packers are becoming more active, but the bid/ask spread is running around $4.  This morning the U.S. dollar found support from better-than-expected U.S. monthly payrolls which also added pressure to live cattle.

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Corn futures were higher after the weekly EIA ethanol production report on Wednesday showed strong old crop demand from the industrial sector.  The average daily production figure came in at 882,000 bpd, which was the heaviest average daily corn use since June 2012 at 92 million bushels per week.  The July contract saw some light pressure with the Goldman roll beginning tomorrow.  According to CONAB’s estimates this morning, the Brazilian crop continues to get larger with corn production seen at 78.5 million metric tonnes versus 78.0 million metric tonnes last month.  The increased total is due to gains in the second safrinha crop, and some analysts are even talking about an 80.0 million metric tonne crop.  Reasons for the increase in safrinha production include: strong corn prices due to tight world supplies, a weakening Brazilian currency which increase prices for Brazilian farmers when they sell their crops, and an ever increasing planting of early-maturing soybeans (90-95 days maturity) which allows more time to plant a second crop of corn.
                                                                           
Wheat futures saw pressure again today as bears are quick to note that USDA June 1st wheat stocks have been larger than the average guess in at least 12 of the 13 years.  Yesterday, Monsanto Company said that broad testing of commercial wheat seeds in Oregon and Washington State has found no evidence of its long shelved experimental biotech wheat.  According to company officials, it was possible that the illegal wheat discovered growing in an Oregon field may have been the result of sabotage.  HRW harvest is moving along in Texas and extending north into Oklahoma where conditions are dry enough.  Early reports of SRW harvest in the Deep South are good with Alabama seeing healthy yields.  Extreme heat in the Southern Plains next week is expected to stress wheat in the grain fill stage.
                              
Soybean futures ended mixed while fund buying consisted of 3,000 bean contracts.  Prices saw some pressure earlier due to better opportunities for planting after heavy rains that started in the Southwest began to diminish as they headed east.  The shift will help most of the Belt and provide a window to get the ground seeded.   CNGOIC is estimating Chinese June soybean imports at a record large 7.25 million metric tonnes.  Argentine farmers may temporarily halt crop sales at some point in the next two months in an effort to protest government trade and economic policies that they say hurt profits.  The Buenos Aires Grain exchange kept its Argentine soybean production at 48.5 million metric tonnes with 98% of the crop harvested.  So far, accumulated production is at 47.75 million metric tonnes.
                                                                     
Lean hog futures found support due to firmness in cash prices along with tight supplies of hogs.  Late yesterday pork values advanced to the highest level since June 29th of 2012.   CME Lean Index for the 2-day period ending June 4 was at 95.98, up from 95.08 the previous session.  Meanwhile, the PEVD virus has been detected at 103 sites in 11 U.S. states.  Some analysts believe new cases may have hit their peak last week.  In other news, the SEC obtained an emergency court order to freeze the assets of a 30-year old trader in Bangkok, Thailand, who allegedly benefitted by over $3 million by trading in advance of Smithfield Food’s Inc.’s acquisition announcement last week.      
                                  
Live cattle futures posted gains on ideas that the market has already priced in seasonal weakness along with futures discount to the cash market.  The softer dollar and good weekly export sales offered underlying support.  Weekly export sales for beef were at 12,800 metric tonnes which was above the 4-week average of 5,375.  Packer margins are still profitable but traders are keeping a close watch on demand.  The midday boxed beef data showed Choice $1.32 lower at $203.08, while Select was $.28 higher at $184.84. 

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Corn futures were mostly lower with July slightly higher on bull spreading.  Gulf corn basis was reported 5 cents firmer at $.83 above July futures this morning for immediate delivery.  Ethanol demand is helping to support basis levels, which are the strongest in several years.  EIA Fuel Ethanol Stocks were up .4 million barrels at 16.4 million barrels.  Ethanol production was up 23,000 barrels to 885,000 barrels per day.  Although there is a USDA Supply/Demand report next Wednesday, most of the trade is looking ahead to the June 28 Acreage and Grain Stocks reports.  Traders remain cautious as the June 1 corn stocks have been above the average trade guess in 4 of the last 8 years.  China’s National Grain and Oils Info center says local corn prices in the medium term could increase as the impact of bird flu diminishes.  The anticipation of stronger feed demand, along with lower domestic supply on the open market due to government corn stockpiling purchases should improve prices.
                                                                      
Wheat futures came under pressure due to seasonal weakness with the start of the winter wheat harvest along with ideas that rains in the southern Plains will help late developing crops.  Further losses were seen as the Deutschebank index fund rolled out of July futures again today.  The UBS and Goldman rolls are supposed to start on Friday.  Monsanto claims tests on wheat varieties around Oregon today failed to show biotech traits of GM wheat found on an Oregon farm.  Therefore, it claims the GM wheat found was an isolated incident.  Overall world wheat production is expected to increase by 6.9% to a record 701.1 million metric tonnes.  Informa Economics lowered its forecast of U.S. 2013 Winter Wheat Production to 1.494 billion bushels, down from 1.529 billion previously.
                                
Soybean futures were mixed with bull spreading featured as the market is reminded of the tight cash situation.  Spot prices are climbing in an effort to ration supplies from last year’s harvest.  According to news wires, Argentine soybean protein levels are well below normal, which could impact their meal exports or the country’s which have been buying them.  Consultancy Informa says it sees Argentina’s soybean production at 50 million tonnes, while Brazil’s is estimated at 82 million metric tonnes.  Meanwhile, pig prices in China have been recovering leading to ideas that soymeal demand will improve.  Virginia Governor Bob McDonnell announced this week that China’s Dandong agreed to buy up 29 million bushels of U.S. beans from the upcoming harvest from Perdue Agribusiness Inc.  In other news, the CFTC in a lawsuit against USBank claims they did not protect customer funds of Peregrine, saying instead the bank treated them as Peregrine Company funds.
                                                               
Lean hog futures were mixed with prices dipping on weak export business for pork for the month of April along with ideas that the product market may be nearing a seasonal top.  Although there has been optimism surrounding the Smithfield deal with China, news that China imported just 37.1 million pounds in April weighed on prices.  The figure is down 43% from a year ago as well as down from the peak of 117.8 million pounds from November of 2011.  The CME Lean Index for the 2-day period ending June 3 was at 95.08, up from 94.62 the previous session
.                                   
Live cattle futures finished lower as beef continues to decline along with concerns over the potential for sluggish consumer demand.  The trade is concerned that recent cooler weather and consumers’ sensitivity to high priced beef will erode demand.  Cash dealings have been inactive although packers have opened with bids of $121 live in the Panhandle and in Kansas.  Losses were limited by futures discount to the cash market.  The wholesale boxed beef quotes were mixed with Choice $.89 lower at $204.40, while Select was $.54 higher at $184.63.  Packer margins are still fairly decent although lower beef prices have cut into margins.  Slaughter was on target with expectations at 124,000 head.

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Corn futures were mostly weaker due to additional fund selling to start the month.  The July/December spread was supported by thin supply pipelines in some areas.   Planting progress came in less than expected but the eastern Corn Belt is expected to make good progress this week.  According to the USDA’s crop progress report, the crop is at 91% planted, lagging the 5-year average pace for this date of 95%.  This means that nearly 8.76 million intended acres were unplanted as of Sunday.  The states running most behind schedule include Iowa, Wisconsin, southeast Minnesota and North Dakota along with western Illinois.  Emergence was pegged at 74% compared to the 5-year average of 82%.  EIA data showed ethanol left in storage at the end of March dropped 3.3% from the previous month to 796 million gallons.  The total was 17.5% below last year’s inventory.
                                                          
Wheat futures ended generally lower on ideas that there are ample global wheat supplies to meet needs.   Currently U.S. wheat remains at a premium to other major exporters.  Following yesterday’s close, the weekly crop conditions report showed winter wheat at 73% headed, lagging the average pace of 80%.  Spring wheat planted is at 80% complete which is below the 5-year average of 92%.  Last year at this time, the crop was already at 100% planted.  Japan is tendering for 163,605 metric tonnes of wheat in the weekly MOA tender.  The tender includes 61,140 metric tonnes of U.S. HRW and spring wheat, but no U.S. white wheat.  Instead, they are securing Australian standard white.  Meanwhile, cash-strapped Egypt has asked France for easier credit terms for wheat purchases and storage and for help in building silos. 
                           
Soybean futures saw some pressure tied to profit taking following yesterday’s run up along with ideas that the market was becoming overbought.  Fund selling was estimated at 2,000 bean contracts.  CIF basis bids were softer in the river market due to weak export demand, and Brazil export business is improving which is shifting demand away from the U.S. for beans.  Soybean meal demand remains strong which is keeping the U.S. crush pace steady.  With tight old crop supplies, the situation has benefited the July/November soybean spread.  Monday afternoon the USDA’s weekly progress report showed plantings at just 57% complete compared to the average of 74%.  Last year at this time, 93% of the crop was already in the ground.  There are still around 33.2 million intended acres of beans to be seeded.  Emergence was reported at 31% versus the 5-year average of 49%.
                                                           
Lean hog futures found strength from higher cash prices along with a rising lean hog index.  Part of the bullish sentiment has been driven by news last week of a Chinese company’s acquisition of Smithfield Foods.  Some traders are optimistic that the deal will help improve export business from China.  Cash hog bids were mostly unchanged from yesterday, although a few plants quoted mixed prices.  Seasonally tighter supplies have caused packers to bid more aggressively for hogs.  Some packers have chosen to cut their slaughter schedules in lieu of paying higher prices for hogs. 
                             
Live cattle futures gained on technical buying interest, strong product movement and optimism surrounding the cash market.  Gains were limited by cooler weather in parts of the U.S. which remains unfavorable for grilling.  Meanwhile, cash cattle bids remain elusive so far this week with activity mostly a collection of showlists.  The wholesale boxed beef data came in softer with Choice quoted $.64 lower at $205.53 while Select slid $1.34 at $184.10 on total sales of 115 loads.  Yesterday, the USDA reported pasture conditions improved to 46% good/excellent, up from the previous week at 42%.

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Corn futures were pressured by fund selling after July’s inability to push above resistance at $6.69.   Funds sold an estimated 10,000 corn contracts.  On Friday the national cash average price was $6.95 which was $.33 above that day’s close in July futures.   Corn preliminary Open Interest rose by 15,971 contracts for the last trading day in May.  Because of roll activity, July lost 4,025 contracts, and the main Goldman Roll begins on Friday.  According to some weather forecasts, temperatures are expected to be below normal early June temperatures with above normal moisture for most areas east of the Missouri River.    For this this afternoon’s USDA crop progress report, the trade was anticipating plantings at 92% with the crop rated at 60-65% good/excellent.  The report showed the crop at 91% planted with the crop rated at 63% good/excellent. 
                                                    
Wheat futures were slightly higher with heavy weekend rains over Oklahoma, Kansas, Arkansas, Missouri, southern Illinois, Indiana and Ohio.   Following the close, the weekly crop conditions report showed winter wheat conditions at 32% good/excellent, up 1% from the previous week.  Spring wheat planted is at 80% complete versus the 5-year average of 92%.  On Friday open interest in futures jumped 5,106 contracts in Chicago on new net buying.  However, Open Interest in July dropped 4,587 in the preliminary report due to index fund roll activity.  The EU is recommending testing of soft white wheat imports in an effort to make sure that they are non-GMO.  Meanwhile, Japan has withdrawn import tenders for white wheat from the U.S.  In addition, South Korea and Taiwan are suspending purchases on a mill by mill basis until the USDA determines how widespread the situation is. 
                           
Soybean futures extended Friday’s gains on short covering and cool/wet weather in the forecast this week.  On Friday Open Interest increased by 12,162 contracts with July seeing a slight decrease of 1,652 contracts.  Given wet forecasts, there is uncertainty as to whether producers will be taking PP insurance, or planting corn after the PP date at reduced insurance, or switching to beans.  Recent rough estimates indicate an increase of 1-2 million acres for soybeans across the Dakotas and Minnesota.  Last week sources reported large truck loads of soybeans headed north into those areas and returning with seed corn.  Since April 1 southeast Minnesota has received 250% of its normal rainfall.  For this afternoon’s crop progress report, the trade was looking for bean plantings to run between 52-56% planted.  The report revealed plantings at 57% complete.  
                                                       
Lean hog futures experienced a choppy, two-sided trade today due to the combination of softer pork cut-out values Friday and talk of seasonal declines in hog supplies.  Weakness in the cattle pit and ideas that the market was approaching overbought territory also contributed to the negative tone.  This morning cash markets were reported steady to $.50 higher at terminals as packers are in of hogs.  One plant in Eastern Iowa is not slaughtering because of flooding conditions there.  The CME Lean Index for the 2-day period ending May 30 was at 94.26, up from the previous session at 94.04.
                           
Live cattle futures settled lower tied to long liquidation by funds, softer corn prices and weakness in beef on Friday.  The CFTC Commitment of traders report showed a drop of 1,717 contracts in the spec fund net long. The commercial sector continues to liquidate its large number of longs.  Traders remain uncertain about this week’s cash cattle trade given ample supply and sluggish beef prices.  This morning Choice was quoted $.45 higher at 207.10 with Select reported $.55 lower at 186.65.
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Corn futures were firmer as traders injected weather premium into new crop contracts due to the possible reduction in acres.  It is estimated that corn planting is 91-93% complete with the crop rated 60% good/excellent.  The number of final planted acres remains uncertain and additional areas need to be replanted due to flooding.  Seed dealers are reporting short season corn moving south for replant needs and because some northern producers will take the prevent plant insurance and go for the cover crop.  Meanwhile, national corn basis is at a record high for this date while running $.33 above July.  The spot corn average price is $1.25 higher than a year ago at this time.  The Argentina Ag Ministry estimated that 69% of the country’s corn crop was harvested as of May 30th.  So far, 2.49 million hectares have been harvested, up from last year’s figure of 2.25 million hectares.
                                               
Wheat futures were initially lower Friday in response to the GMO wheat discovery in Oregon.  However, prices finished higher on spillover strength from the neighboring grain complex along with end-of-the-month positioning.  South Korea says it will now halt U.S. wheat shipments until tests are conducted on recent shipments.  This comes after Japan said it is temporarily suspending U.S. wheat shipments.  Meanwhile, Taiwan says it is reviewing U.S. wheat shipments and may require exporters to guarantee that they are GMO-free.  White wheat basis levels in the PNW remain on the defensive.  The USDA says they are investigating the GMO situation, noting that they have no evidence or signs that the seed entered any commercial channels.  About 1/3 of SWW wheat is shipped from the U.S. to Japan each year. 
                     
Soybean futures were sharply higher on concerns that delayed plantings could potentially impact beans.  U.S. 2013 soybean planting is estimated near 55-60% done compared to 70% average.  Meanwhile, rains continue to move across parts of the Corn Belt which will further delay planting progress.  The two-day forecast indicates that 80% of the east Midwest could see .50-1.00 inches of rain.  In addition, next week’s forecast for the Midwest shows rain Tuesday thru Friday with 75% coverage totaling .50-1.25 inches of rain.  Basis levels have stabilized after eroding the last 10 days.  Producer selling has eased after getting busy late last week and early this week.  Last night the average cash soybean price in the U.S. was $1.53 per bushel higher than for the same time last year.  The USDA announced a daily sale of 30,000 metric tonnes of soyoil to Germany for 2012-13.
                                                  
Lean hog futures gained due to strength in the cash market and technical buying interest.  Some plants are still trying to fill in Saturday kill runs, and almost all plants are in need of hogs for early next week.  Wholesale pork prices midday showed a decline for the composite Pork Cutout by $1.43 with most of the sell-off concentrated in Ribs, Loins and Bellies.  Meanwhile, China’s National Development Reform Commission data shows the country’s hog to corn ratio is 5.5 to 1, below the national breakeven of 6 to 1.
                            
Live cattle futures ended stronger due to strong packer margins and tightening market-ready supplies.  The midday boxed beef data showed Choice slid $1.24 to 207.31 while Select lost $1.58 to $187.51.  The premium of Choice to Select is approaching the $20.00 area.  Estimated week to date slaughter is 380,000 head, off 117,000 head from the previous week due to the Memorial Day holiday.  The figure is also 14,000 head behind a year ago.  According to the USDA, weekly export sales for beef totaled 19,000 metric tonnes versus 20,400 metric tonnes the week prior. 
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Corn futures were lower on long liquidation and the exiting of bull spreads. Citigroup estimates that the average cash price will run around $5.00.  A South Korean feed manufacturer secured 86,000 metric tonnes of optional origin corn from ADM.  According to Dow Jones, over 800,000 metric tonnes of combined wheat and corn has been bought by South Korean companies in the past three weeks.  EIA Fuel Ethanol Production figure was down 12,000 barrels to 863,000 barrels per day.   Total ethanol production for the week was pegged at 6.041 million barrels.  EIA Fuel Ethanol Stocks were down .1 at 16.047 million barrels which will help support margins in the near term.  Corn used in last week’s production is estimated at 90.62 million bushels.  Corn needs to average at least 94.693 million bushels per week to meet this crop year’s USDA estimate of 4.6 billion bushels.
                                                
Wheat futures were negative on concerns that the discovery of GMO plants in Oregon will impact export demand.    Late yesterday afternoon, the USDA announced the discovery of non-approved GMO white wheat grown in Oregon in 2012.  The wheat was planted in 2011 and discovered by a farmer while trying to kill the wheat with Roundup herbicide.  Several plants resisted the wheat killer and Oregon State University was notified of the incident. Since non-GMO certificates are required on vessels loaded to most exporters, this could have big consequences for exports.  In response to the news, Japan already cancelled 916,000 bushels of white wheat in its weekly tender overnight.  U.S. hard red winter wheat crop areas will see a the combination of rain and sunshine for a bit, but no improvement is expected for crop conditions or production potential outside of Nebraska and northern Kansas. 
                  
Soybean futures were weaker on profit taking, softer cash markets and more talk of Chinese bean cancellations.  Oil World is estimating that May soybean exports from Brazil may hit 8.7 million metric tonnes.  According to sources, vessel wait times are running around 39 days for Santos and 55 days for Paranagua.  Although there is still time to get beans planted in the U.S., total acreage could be compromised due to wet conditions in the central part of the country.  Moreover, there are concerns that late maturity of the wheat crop will result in fewer double crop acres.  Old crop basis continues to erode in spots with crushers having sufficient supplies for the next couple of weeks.  Citigroup is estimating the soybean cash average price will run between $11.50 and $11.75 for 2013/14.  The figure is higher than the USDA’s most recent forecast.  This morning the USDA announced the private sale of 120,000 metric tonnes of soybeans to China for the 2013/14 marketing year. 
                                          
Lean hog futures advanced on improving packer margins and strong product movement.  Pork garnered support from yesterday’s news of the Smithfield deal and ideas that export sales will improve over time. While an opinion piece in the Wall Street Journal stated benefits of the Smithfield acquisition by a Chinese firm, it also suggested that U.S. trade officials and the Administration should use the deal as leverage to gain further reciprocal agreements for China to open their restricted markets.  Talk that packers need hogs for a higher slaughter rate on Saturday and for a large kill for a full next week offered support.  The CME Index for the 2-day period ending May 28th was at 93.93, up from 93.71.
                           
Live cattle futures were softer along with feeder cattle on long liquidation and lack of meaningful cash trade so far this week.  Cash cattle were about steady with last week with bids coming in at $122 and offers at $126.  There was some talk that retailers are re-stocking inventory since weekend clearance for beef was strong last weekend.  The boxed beef data showed Choice down $.35 to 209.18, while Select slipped $.43 to 189.90 on 101 loads.  Yesterday, slaughter came in above expectations at 126,000 head.
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Corn futures were mostly higher on rain concerns although July ended negative as longs exited the contract prior to the month end.   Short covering helped push the December contract up a dime near the crop insurance revenue number at $5.65.  U.S. growers have slowed their planting pace during the past week due to rainy weather.  As a result, traders are concerned that the heavy rain coverage in the Farm Belt will prevent growers from planting as much corn as they intend.  Yesterday the USDA’s weekly corn progress report showed corn plantings at 86% complete versus the 5-year average of 90%.  Emergence is lagging at 54% compared to 67% average for this date.  With nearly 13 million acres left to plant, analysts note that there could be a loss of 2-3 million acres off the March intentions.
                                            
Wheat futures finished a little stronger on concerns about the wheat crop in the southern Plains and concerns about planting delays for spring wheat crops in the northern Plains.  Gains were limited by U.S. rains and favorable weather in Australia and the Black Sea Region.  Some showers are expected this week in the drought areas of the lower Volga River Basin and northeast Caucasus region.  Any level of moisture is welcome and will help the prolonged drought.  In other news, Egypt’s Supplies Minister indicated that the country’s wheat harvest is 3.057 million metric tonnes harvested so far, 45% ahead of last year’s pace.  They plan to harvest 9-9.5 million metric tonnes of domestic wheat this year in an effort to cut imports from 10 million metric tonnes to 4-5.  The USDA’s weekly crop progress report Tuesday reflected the Winter Wheat crop at 31% good/excellent, unchanged from the previous week.  Winter wheat is now 60% headed which shows maturity is still lagging the 72% average for this date.  Spring Wheat plantings are at 79% complete versus the 5-year average at 86%.  The figure was above what the trade had anticipated.
                      
Soybean futures experienced pressure linked to selling in other sectors such as financials, metals and energies.  End of the month profit taking was another factor along with news that China cancelled 3 cargoes (147,000 metric tonnes) of U.S. beans for the 2012/13 marketing year.  The cancellation may signal slowing near-term demand.  Rains have pushed soybean planting to its slowest pace in 17 years.  After Tuesday’s close, the weekly crop progress report showed bean plantings at 44% complete versus the 5-year average of 61%.  Also, emergence is well behind schedule with 14% out of the ground compared to 30% average.  Preliminary Open Interest dropped 5,703 contracts on Tuesday which demonstrates that the rally was short covering by bears.  Meanwhile, basis levels continue to erode putting more pressure on the inverses in the market.
                                     
Lean hog futures benefitted from news that a Chinese meat producer, Shuanghui International Holdings offered to buy Smithfield Foods Inc.  The move, which would be the largest takeover of a U.S. company by a Chinese buyer, could encourage larger U.S. pork exports to China later in the year.  Nearby contracts saw some pressure from ideas that domestic demand for pork could start to ease, following a seasonal downtrend after the start of summer grilling season.
                         
Live cattle futures advanced due to futures discount to cash and strong demand for product following the holiday weekend.  Packers remain tight on inventory and may need to increase available cattle supply for the next week with a full week of slaughter.  The wholesale market has recovered with the USDA showing Choice gained $1.35 while Select was $1.04 higher.  Yesterday, the USDA reported pasture conditions were improved by moisture with ratings coming in at 42% good/excellent compared to 38% the previous week.  However, conditions are still worse than 2012 when ratings were at 47% good/excellent.
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Corn futures gained on concerns that extremely wet weather will force growers to replant their crops or switch to beans.  Funds bought an estimated 12,000 corn contracts.  Heavy rains over the weekend swept across the Dakotas, Nebraska, Iowa, Illinois and Indiana.  All areas saw accumulations of one to two inches, while some parts of Iowa received 6 to 10 inches.  Some of the areas are past their Prevent Plant date, where producers can receive an insurance claim on the corn and then choose to plant beans.  Other Prevent Plant dates are on May 31.  In parts of Texas there were reports of up to 10 inches of moisture.  This has resulted in low land flooding as well as water standing in fields.  Forecasts are calling for additional rain coverage next week for most of the Midwest and all of the Plains.  The USDA’s weekly corn progress report showed corn plantings at 86% complete versus the 5-year average of 90%. 
                                             
Wheat futures ended weaker tied to cheaper world wheat prices and the impending 2013 harvest in the north hemisphere.  The firmer U.S. dollar also exerted pressure with losses limited by the gains in corn and beans.  Fund selling was estimated at 3,000 CBOT wheat contracts.  Weekly export inspections for wheat came in at 21.22 million bushels, slightly above expectations of 20.0 million bushels.  However, for the marketing year, shipments are 987.5 million bushels, about 31 million below last year.  Canadian planting continues to move along at a sluggish pace.  The weekly crop progress report reflected the Winter Wheat crop at 31% good/excellent, unchanged from the previous week.  Spring Wheat plantings are at 79% complete versus the 5-year average at 86%.
                  
Soybean futures soared on ideas that heavy weekend rains will further hinder corn and soybean plantings.  Funds bought an estimated 13,000 soybean contracts.  Strength in July was short covering and gains in November were tied to weather.  Prevent planting dates are June 10 for MN and ND, while IA dates are at June 15 and WI is at 6-10 and 6-15.  Basis bids have eased due to the strong rally in futures and also because of increased producer sales.  The USDA reported the private sale of 120,000 metric tonnes of soybeans to China for the 2013/14 marketing year.  Following the close, the weekly crop progress report showed bean plantings at 44% complete versus the 5-year average of 61%.  Private forecast firm Safras suggests a final Brazilian crop size of 82.3 million metric tonnes, less than the current USDA projection of 83.5 million metric tonnes. 
                                 
Lean hog futures were mixed with weakness stemming from lack of support in the cash market and wholesale pork values. Talk that weekend weather was extremely wet had traders wondering if retailers may not need much pork this week for replacement.  Cash prices inched lower on the National Daily Direct morning cash hog report.  The weighted average price dipped $.09 to $90.05, ranging from $89 to $92 on 3,219 head reported sold.  The National Pork Plant Report posted 158 loads at midday with carcass values sliding $1.65.
                       
Live cattle futures posted modest gains with traders looking for the potential of increased short-term summer demand to help boost buying activity in both wholesale and futures markets.  The wholesale market was reported slightly higher this morning with Choice up $.17 at $209.04, while Select was quoted $.20 higher at 190.64 on 120 loads.  The cash cattle market is expected to develop later in the week.  Packer margins are healthy although there is some uncertainty over the short-term direction of the market.  Slaughter came in higher than anticipated at 125,000 head which indicates strong demand from the packer.
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Corn futures were softer as traders collected profits ahead of the extended holiday weekend.  There will be no CBOT grain trade Sunday night or Monday during the day.  The USDA announced 180,000 metric tonnes of U.S. new crop corn to China this morning.  Given China’s firm prices, U.S. new crop remains a bargain.  Cash sources said that 60,000 metric tonnes Brazil corn cargo was secured by Taiwan’s MIPA group for shipment in August.  They paid $1.59 over Sept futures with basis and freight, and Bunge was the seller.  Traders say a private group in Israel purchased a total of 75,000 metric tonnes of optional origin corn out of 80,000 metric tonnes originally sought.  The majority is thought to have originated from South America.  Argentina’s Ag Ministry pegged the corn harvest there at 65% complete for the week ending May 23rd. 
                                          
Wheat futures struggled on profit taking and along with fund selling.  Funds sold an estimated 2,000 wheat contracts.  This morning USDA confirmed the sale of 180,000 metric tonnes SRW to China for the 2013/14 marketing year.  This has mostly been priced into the market over the past 48 hours.  Wheat conditions in China remain fairly decent with northern crops reproducing and filling with timely rainfall expected and ongoing irrigation usage.  Meanwhile, the drier areas of southwestern Canadian Prairies will see favorable rain coverage over the weekend and next week.  Fieldwork in Saskatchewan is now 27% complete, lagging the 44% average pace for this part of May.  Canada is in need of drier weather to help planting progress as time is nearly running out.
            
Soybean futures were mixed Friday as the July/November spread unraveled.  Funds sold an estimated 7,000 CBOT contracts in today’s trade.  July beans fell fast on rumors that China might be cancelling 3-4 cargos of U.S. beans.  July beans also came under pressure on weaker soymeal prices and news that Argentina’s port strike has been settled.  Index funds will begin rolling out of the July positions on May 31.  Basis bids have backed off as much as $.80 per bushel from last week’s peak.  Some central Illinois bids are still running $.65 over July futures.  On Monday, the national cash price reached the highest level since November, but managed to back off $.08 on Wednesday despite the flat futures market.  Argentina Ag Ministry said it estimates the country’s soybean harvest for the week ending May 23rd at 90% complete, up from last week’s figure of 85%.  Bean production was reduced to 50.6 million metric tonnes, down 700,000 metric tonnes from the previous estimate.  
                             
Lean hog futures gained today as buyers were emboldened by higher pork prices.  There are expectations that cash prices will remain firm heading into next week.  Midday mandatory FOB plant prices were significantly higher with carcass at 95.88, up 2.12 with strength in belly and rib prices.  Estimated daily slaughter was 405,000 head today with a Saturday kill of 2,000 head, putting the weekly total at 2,054,000 head versus 2,030,000 last week.  The 2-day CME Lean Hog Index settled at 93.42, down .07 on 5/23.
                                                                  
Live cattle futures ended firmer with futures inching closer to the cash market as shorts covered their previously held positions.  Some cash cattle sales were reported at $124 live in the South and $202 dressed in the North with low volume.  Beef prices are expected to soften going into next week.  Estimated daily slaughter today was estimated at 124,000 head with a Saturday kill of 27,000 head, putting a final weekly total at 648,000 head.  This compares to 652,000 head last week.  Wholesale prices have dipped today with Choice quoted $1.44 lower this morning at 209.93, while Select was $.41 lower at $191.11 on 64 loads.

Corn futures extended yesterday’s gains supported by Chinese buying interest along with strong demand from U.S. ethanol makers.  Fund buying today was estimated at 6,000 CBOT corn contracts.  Ethanol stocks continue to drop with yesterday’s EIA ethanol stocks figure at 16.182 million barrels.  RIN values for 2013 production rose to $.89, which is a strong incentive to do discretionary blending.  E-85 prices are becoming more competitive on a BTU basis.  This morning’s weekly export sales report showed 2012/13 corn sales at 4.1 million bushels, below 5 million bushels needed each week to stay in step with the government’s projection.  Sales for the 2013 marketing year came in at 13.4 million bushels.  Japan was the leading buyer on new crop followed by China.
                                      
Wheat futures rose Thursday on spillover support from the neighboring grains.  Fund buying consisted of 6,000 contracts.  Weekly export sales for wheat for the 2012/13 marketing year came in at 8.8 million bushels, below 13 million bushels needed each week to match the USDA’s projection.  However, the figure exceeded expectations and was considered friendly.  May 31 is the final day for old crop wheat to be shipped.  Sales for the 2013/14 marketing year were at 26.2 million bushels.  Large new crop sales for U.S. wheat had the trade thinking that China is back in the market for U.S. soft red wheat.  Ag Canada boosted estimates of Canadian wheat production to 29.4 million metric tonnes.  The figure is slightly above the USDA estimate of 29 million metric tonnes. 
       
Soybean futures saw volatile action today while initially finding strength on rumors that China was pricing U.S. beans for June/July time frame.  News that Chinese crushers were covering short positions put a squeeze on the market, triggering a series of buy stops and sending July beans $.50 higher before the massive sell off.  Prices began to retreat once it was announced that the port strike in Argentina that began earlier this week has now been settled and workers could return to work as soon as it is ratified.  However, later after the close there was word that the strike is still on-going, but talks are making progress.  About 50 ships have been stalled since they walked off the job earlier this week and another 50 are waiting for arrival.  This morning the USDA announced the private sale of 115,000 metric tonnes of soybeans to China for the 2013/14 marketing year.  Weekly export sales for beans were pegged at 6.7 million bushels for the 2012/13 marketing year.  Sales for the 2013/14 marketing year came in at 30.8 million bushels.
                           
Lean hog futures were softer in reaction to news that the cold storage supply is at a record high.  Some traders decided to book profits amid talk of lower packer bids next week which could pressure the cash market.  The monthly Cold Storage Report showed end of April frozen pork stocks at 698.8 million pounds, up 5.9% from the previous year and up 7.9% from last month.  The CME Lean Index for the 2-day period ending May 21st was 93.44, up from 93.29.
                                                              
Live cattle futures ended weaker after light cash sales were reported yesterday in Texas at $124 on a live basis, down $1.00.  Earlier wholesale prices set another record high for Choice at $211.35, while Select was $.54 lower as the spread continues to widen.  This morning the USDA reported 20,400 metric tonnes of beef was sold for export last week.  The monthly USDA Cold Storage Report was somewhat friendly for beef.  The inventory was down 1.2% from the previous month and smaller than the end of April 2012.                                             

Corn futures rallied credited to big China purchases of new crop corn, the 10-15 day U.S. weather forecast and the drop in ethanol stocks.  The 10-15 day outlook is calling for hot and dry weather with below normal precipitation for the southern two thirds of the country.  This morning the USDA reported the sale of 180,000 metric tonnes of U.S. corn to an unknown destination for the 2013/14 marketing year.  There was also the announcement of 360,000 metric tonnes of U.S. corn sold to China for the 2013/14 marketing year.  China’s National Development & Reform Commission estimated the country’s mid-May hog to corn ratio at 5.33 to 1.  The EIA ethanol stocks figure came in at -.2 million barrels to 16.2 million barrels.  Production was up 17,000 barrels to 875,000 barrels per day. 
                                        
Wheat futures climbed with corn on continued weather concerns, both in the U.S. and abroad, and talk of some potential export business.  An official with U.S. Wheat Associates said U.S. exports of good grade wheat to Southeast Asia is still important, stating that the past couple years growth in exports to the region averaged 8%.  Recent dry conditions across much of southern Russia, Ukraine and parts of Eastern Europe have offered support to EU markets.  Eastern Australian farmers are contending with the same issues U.S. growers in the Plains dealt with last fall.  The Western Plains continue to drag along, with scattered moisture in the forecast for parts of Oklahoma, Eastern Kansas, and eastern Nebraska which could help fill heads on late maturing wheat. 

Soybean futures closed higher although traders collected profits on the recent surge of bull spreading that pushed the July/Nov spread near the $2.60 area yesterday.  Meal futures are gaining due to reduced U.S. production and continued strong export interest.  As a result, buyers are chasing old crop bean bushels in the cash market.  However, bean basis bids in the Midwest have fallen anywhere from $.20 to $.50 basis the July with several processors rolling those contracts out to the August and November futures.  Bulls point out that the tight old crop situation is not going away and since the crop is not completely in the ground yet, it will be a long ways off before new crop bushels become available.  Meanwhile, Argentina is looking for approval to export biodiesel to the U.S. 
                    
Lean hog futures were significantly higher while finding support from the firm tone in the cash market.  Solid gains in pork cut-out values late yesterday also emboldened buyers.  Traders were initially cautious given weak packer profit margins and slower packer demand for inventory next week due to the Memorial Day Holiday.  The CME Lean Index for the 2-day period ending May 20th was 93.29 from 93.18 the previous session.  This now puts June futures at a slight premium to the cash market.
                                                        
Live cattle futures were softer on demand concerns and technical selling pressure.  Traders are concerned how consumers will react to high beef prices after wholesale prices surged this spring.  Light cash sales occurred in Texas at $124 on a live basis with volume estimated at around 2,500 head.  In Nebraska and Iowa, asking prices are running around $204-$206 on a dressed basis.  Volume is expected to remain light for the balance of the week as packers will be buying for a short holiday week ahead.  Last Trading Day in the May Feeder Cattle and the options will be Thursday, May 23.  Any in-the-money options will be exercised/assigned on Friday, and the futures will be cash settled on Monday, May 27.
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Corn futures slid after traders extracted weather premium out of the market following the USDA’s progress report which showed plantings at 71%.  Although the figure was below the five-year average of 79%, it was considered less bullish since it was at the higher end of the trade guesses.  .  The corn crop is estimated to be 19% emerged versus 46% for the five-year average and is running a couple of weeks behind.   The Dakotas and Minnesota received heavy rains yesterday, and prevent plant dates in the Dakotas is May 25th for corn.  According to analysts, this still could push a million acres over to soybeans.  The corn market has also struggled due to increased corn imports from South America.  In other news, a group of rural Argentine agricultural producers intend to protest next Tuesday, May 28th.  The protest is to show the Argentine public the disparity between what rural ag producers receive for their goods versus prices being charged on retail shelves.
                                       
Wheat futures sagged on profit taking and U.S. spring wheat plantings which came in at 67% complete, gaining on the five-year average of 76%.  Funds were sellers of an estimated 1,000 wheat contracts.  There are concerns about getting the balance of the crop planted due to wet conditions and the 6-10 forecast showing rains for the northern U.S.  Flooding in the Dakotas and Minnesota has halted spring wheat planting for the time being.  Meanwhile, 43% of the winter wheat crop is headed, well behind the 5-year average of 62% and 80% a year ago.  The market found some buying support during the session on rumored export business.  Japan is tendering for 122,000 metric tonnes of milling wheat this week.  

Soybean futures were mixed with July rallying as it tries to close the gap on continuation charts.  Bull spreading continues to push the July/November spread even further at around a $2.57 ½ inverse, up 17 ½ on the day.  Shorts are exiting with likelihood that there will be no delivery receipts again for July deliveries. News that 11 cargoes of soybeans were headed into the U.S. from South America was a limiting factor.  In addition, Chinese soybean prices remain strong, and crush margins have been softer which could cause them to ease up on imports in the near term.  Port workers in Rosario, Argentina went on strike yesterday seeking higher wages to keep pace with inflation.  This morning the consulting firm Safras & Mercado trimmed its projection of Brazil’s output to 82.5 million metric tonnes.  Although the figure is smaller than the USDA’s May estimate, it is 22% above last year’s crop.  The soybean harvest in Argentina is estimated at a bit over 90% complete.
                     
Lean hog futures posted modest gains as cash prices remain firm with continued seasonal demand lifting prices.  Gains were limited by yesterday’s pork cutout values which were $.63 lower led by the sharp break in rib prices.  Packer’s profit margins are tighter, and Monday just 234.6 loads of pork changed hands.  Packers say that they have this week’s kill needs met, and demand for cash hogs is lighter for early next week because of the Memorial Day holiday.  Slaughter came in slightly below trade expectations at 411,000 head.
                                                    
Live cattle futures were higher with wholesale prices setting another record high for Choice at $210.46, up $.21.  Traders were also emboldened by futures steep discount to the cash market.  However, some traders are quick to point out that the market’s upside remains limited as high beef prices raise questions about consumer demand.  Slaughter came in at expectations at 124,000 head.  According to the USDA’s weekly conditions report, the overall U.S. pasture and range condition improved 3% in the good category and 1% in the excellent category.
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Corn futures incurred some losses with July down the most on spread profit taking.   Traders were looking at some widely spread rains over the weekend to halt some progress as they expected planting to range from 55-70% complete.  This afternoon’s report showed the figure at 71%, but still off from the five-year average of 79% for this period.  Areas west of the Mississippi River were interrupted due to heavy, widespread showers and some growers may be forced to re-plant in some spots, especially in the Northern Plains.  The rain activity will move east this week, and the north Plains could be subject to another rain event Memorial weekend.  The USDA announced the sale of 120,000 tonnes of meal to an unknown destination for the 2013/14 crop year.  Ethanol margins remain fairly attractive, and ethanol plants have been actively buying due to solid margins.
                                        
Wheat futures managed to erase earlier losses with strong buying support heading into the close.  Prices were initially lower on spillover weakness in the corn pit along with seasonal selling pressure.  Also, improved weather in Europe and Russia put the wheat market on the defensive earlier in the session.  There was confirmation of damage north of Wichita from a hail storm that came through one of the best remaining wheat areas in Kansas on Sunday afternoon.  Severe storms also damaged some wheat in Oklahoma, and heavy rain coverage will continue to impact eastern Oklahoma over the next few days.  Minneapolis gained from heavy rains in the Dakotas and Minnesota that could pose further spring wheat planting delays.  Following the close, U.S. spring wheat plantings came in at 67% complete compared to the five-year average of 76%. 
 
Soybean futures posted a mixed settlement with July supported by old crop tightness.  Meal remains higher, offering underlying support to the market.  November futures continue to trail old crop due to concerns about rising global supplies and the potential for increased bean acreage given the late corn planting.  Weekly export inspections for beans were at just 3.2 million bushels, below the average trade estimate of 5.0 million bushels.  Cash traders say nearly 210,000 metric tonnes of U.S. soymeal from the new crop has been purchased by Vietnamese animal feed.  Analysts were expecting 25%-30% of the soybean crop planted in this afternoon’s weekly USDA crop report.  The figure was slightly less at 24% complete with the five-year average at 42%.
              
Lean hog futures rebounded as traders acknowledge last Friday’s break was exaggerated.  Although the PEDV pig virus was detected in Iowa, the disease is not a food safety threat and the supply side remains uncertain.  The market also garnered support from the higher pork trade late Friday and improving packer margins. The 2-day Lean Hog Index for May 17th is estimated at 93.18, up .25.
                                                    
Live cattle futures gained on fresh record highs for Choice this morning along with ideas that the market was becoming oversold.  Gains were limited as beef-demand concerns persist with expectations for larger supplies later this year.  Participants look for demand to level off following the surge in retail buying ahead of the Memorial Day weekend.  Meanwhile, the June contract is at a steep discount to recent cash cattle prices.  The historically large gap between futures and cash prices is expected to narrow which could start pressuring the cash market. 

Corn futures were mixed on long liquidation with active bull spreading pushing the July contract higher.    Weather remains the central focus as a week of rapid planting will come near a close.  A significant amount of progress was made over the last six days in many areas of the Midwest.  Some analysts suggest that Monday’s USDA Crop Progress report could show Iowa and Illinois plantings at 50% or better.   The North Plains will see the greatest impact from a storm system that will move into the western Corn Belt over the weekend.  This is the initial of a series of storms which will hamper plantings for the entire week.  Informa lowered their corn acreage estimate by 1.0 million acres to 96.83 million.  Their yield is anticipated at 160.9 bushels per acre compared to the USDA’s recent yield estimate of 158.0 bushels per acre.  The drop in the west and south is partly offset by an increase in the east. 
                                 
Wheat futures dipped again on technical selling pressure along with demand shifting to corn as ethanol margins improve. Corn/Wheat spreads were featured throughout the session as wheat continues to lose ground to corn.  Meanwhile, China continues to auction off old crop reserve wheat, and sold 380,000 metric tonnes of 897,000 metric tonnes offered.  Canadian planting continues to operate at a sluggish pace, with Saskatchewan 8% planted on all crops.  The five-year average is at 16%.  According to the government, 24% of the crop area has a surplus of topsoil moisture.  A new Canadian research alliance is receiving a $97 million research grant to improve the yield potential of Canadian wheat.  The alliance group will involve the National Research Council, Agriculture Canada, the Saskatchewan Government and the University of Saskatchewan.  In other news today, Informa pegged U.S. spring wheat acreage at 12.40 million acres.
                                                                                         
Soybean futures were higher on strong U.S. cash market due to good crush demand and talk out of China overnight of a possible government stimulus.  Fund buying consisted of 7,000 soybean contracts.  The USDA reported the private sale of 138,000 metric tonnes of beans to an unknown destination for the2013/14 marketing year.  In addition, 2 cargos (120,000 MT) of beans were sold to China for new crop delivery.  Informa raised their U.S. soybean acreage figure by 1.2 million acres to 78.29 million.  Most of the increase was tied to the west and south.  The yield is estimated at 43.9 bushels per acre compared to the recent USDA estimate of 44.5 bushels per acre.  The Argentine Ag Ministry has stated that the producer sales to exporters have reached 6.1 million metric tonnes as of May 8 compared to 10.4 million metric tonnes.
     
Lean hog futures slid today on commercial selling pressure and buying puts.  There were rumors circulating earlier today that the USDA would announce an outbreak of a disease in 3 hog states called PED.  According to reports, the states included Texas, Iowa and Minnesota.  So far, the USDA has confirmed PED in Iowa.  The disease which affects baby pigs is not transferable to humans, but causes a very quick death in herds that contract it.
                                            
Live cattle futures were lower on positioning ahead of the USDA’s report.  August traded sharply lower on the day while hitting new contract lows.  Some cash cattle sales transpired in Kansas, Texas and Colorado at $125 although some individual auction reports have run as high as $133.  Following the close, the Cattle-On-Feed report showed On Feed May 1st 97%; Placements during April 115%, Marketings during April 102%.   Estimated week-to-date slaughter this week is 496,000 head, 9,000 head smaller during the same period last year.  This morning wholesale prices were mixed with Choice $.19 higher at $208.96, while Select was quoted $.19 lower.
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Corn futures sagged today with reports of good planting progress in Illinois, Indiana and Iowa.   Rain total in most of the Belt were not enough to interfere with plantings, allowing farmers an extra 24 hours to get the crop in the ground.  U.S. fertilizer producer Mosaic Company says it sees U.S. corn plantings at 95 to 96 million acres in 2013, as producers make up for lost time due to unfavorable conditions.  Average Midwest spot ethanol profitability is estimated at $.70 per bushel, or about $.25 per gallon.  This includes all fixed costs and basis, and facilities in the east continue to enjoy better margins than the far west.  By contrast, China’s ethanol industry is losing $1.20 per bushel, or -$.40 per gallon due to preferential government treatment in other sectors, and is functioning at just 40% of capacity. 
                          
Wheat futures came under pressure from improved world weather prospects across the drier parts of Australia and Russia. Fund selling consisted of 4,000 contracts.  Weekly export sales for the current marketing year were pegged at 4.6 million bushels, below 11.7 million bushels needed each week to reach the government’s projection.  Sales for the 2013/14 marketing year came in at 15.3 million bushels.  Forecasts are calling for rain today in eastern Texas and Oklahoma with the pattern extending over much of the central U.S. on Friday.  Although the U.S. hard red winter wheat areas will see scattered rain activity, extremely warm temperatures will keep evaporation rates high which will make it difficult for a net boost in soil moisture from occurring.  Kansas Agricultural statistic service estimates that more than 50% of that state’s wheat shows freeze damage with development running about 3 week’s behind normal pace. 
                                                                                      
Soybean futures advanced Thursday with historically strong cash markets driving prices higher.  Selling remains light as producers take advantage of the current planting window.  July beans found support from fears that Brazil’s Senate may not pass an amendment to government port reforms today by midnight, which will result in a work stoppage during a time when the world is seeing a short bean supplies.  Weekly export sales for the 2012/13 marketing year came in at just.6 million bushels but was slightly above .5 million bushels needed each week to stay on pace with the USDA’s estimate.  Sales for the 2013/14 marketing year came in at 12.7 million bushels.  Meal exports were fairly sizable at 83,000 metric tonnes of old crop and 109,700 metric tonnes old crop when taking tight supplies into consideration.  Informa is supposed to release their report tomorrow morning.
  
Lean hog futures rose sharply higher credited to another hike in wholesale pork prices late yesterday afternoon.  Hogs have benefited from the outlook of tighter supplies of slaughter-ready hogs in late spring and early summer.  The USDA reported the pork carcass composite value for late Wednesday up $.75 at $90.95, the highest prices since new pork reporting series began January 7th.  Meanwhile, cash prices in the eastern Corn Belt have been rising relative to those in the west.  The recovery in prices east of the Mississippi River is attributed to smaller supplies of hogs there following the extreme drought last summer.
                                            
Live cattle futures were initially higher until speculative long liquidation emerged sending prices lower.  Traders were also evening up some of their positions ahead of tomorrow’s USDA monthly cattle-on-feed data.  Traders expect a big increase in April placements given improved feeding margins and cheaper feeders.  Cash cattle traded hands in Texas at $125 on a live basis, down from mostly $126-127 the previous week.  Weekly U.S. beef sales were reported at just 4,700 metric tonnes for the week ending May 9.  This compares to the 4-week average of 13,475.   This morning Choice gained $1.04 at a record high of 208.99, while Select was quoted $.48 higher at $193.23.
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Corn futures ended easier Wednesday while planting has been progressing in NE, IA, IL, IN, MN and the Dakotas.  Some areas last night were interrupted by showers, and forecasts for Thursday and into the weekend are calling for wet weather in the Corn Belt.  Rainfall is expected to materialize by the weekend in the northern Plains and the system could to bring accumulations of up to 1.50-2.0 inches.  The EIA weekly ethanol production increased to an average of 857,000 barrels per day, up 14,000 barrels per day from last week.  No gallons were imported.  Ethanol stocks decreased to 14.4 million gallons increased as consumption exceeded production.  This is the tightest stocks figure since back in November of 2011.
                            
Wheat futures fell on light volume due to technical selling pressure with fund selling estimated at 4,000 contracts.  Losses were limited by ongoing planting delays and approaching crop insurance deadlines which could have some producers taking prevent planting payments.  The planting pace will likely slow further given forecasts for rain in the upper Midwest growing region.  Weather models indicate welcome rainfall for the western Plains by the weekend, but the heavier amounts are designated for NE rather than KS and OK.  According to reports abroad, Russian wheat is being stressed by dry conditions this month although some scattered showers are advertised.  Meanwhile, there are rumors coming out of Russia that they intend to release more wheat for export in the current marketing year which could limit U.S. sales. 
                                                                                  
Soybean futures were softer on spillover pressure from neighboring grains along with the stronger U.S. dollar.  The bean market saw very little impact from news that union workers walked off the job at three of Brazil’s main ports late Tuesday due to failed negotiations.  Analysts were expecting NOPA’s soybean crush to come in between 125 and 127 million bushels versus March’s figure of 137.08 million bushels.  NOPA put the crush at 120.113 million bushels, while soy oil stocks were pegged at 2.638 billion pounds.   The lower-than-expected crush figure was considered negative and pushed the July/November spread lower on profit taking.  This morning the government announced that China bought another 171,000 metric tonnes of soybeans for delivery during the 2013/14 marketing year. 

Lean hog futures dipped due to the firmer dollar and concerns of decreased export sales.  In the first quarter of the year, pork exports and volume declined by 15% tied to tighter import restrictions for countries such as Russia.  Cash markets were reported steady in the Midwest.  Producers are current with marketings as suggested with weekly weight data showing no change from a week ago.  The 2-day CME Lean Index ending May 13th was $91.89, up .16 from the previous session.
                                          
Live cattle futures finished in negative territory due to concerns about sluggish economic growth and the stronger dollar.  Although wholesale prices were higher today with Choice hitting a fresh high, some analysts note that record beef prices could prompt retailers to feature less expensive meats such as chicken and pork.  Cash cattle sales for the week remain undeveloped with packers bids running at $124 live in the Panhandle.  Wholesale prices were quoted higher this morning with Choice up $2.09 at $208.18, while Select was $.63 higher at $192.70.  Slaughter came in above expectations at 125,000 head. 
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Corn futures posted a mixed settlement on profit taking while December found some support due to the slow plantings report.  Fund sold an estimated 3,000 corn contracts.  After Monday’s close, the government said that just 28% of the U.S. crop was in the ground compared to the five-year average at 65%.  This is the slowest progress made since 1980 and similar to 1993 and 1995.  Both years ended with below trend yields.  According to the U of IL, there could be an 8% yield loss for corn planted after May 10th and 15% after May 20th.  Some analysts also note that there could be a 1.5-3.0 drop in U.S. 2013 final planted acres as a result of late plantings.  Meanwhile, there were reports of good planting progress made Sunday and Monday.  However, some areas have been interrupted by rain coverage with more widespread heavier rain activity expected over the weekend in the central Corn Belt.  
                        
Wheat futures were mostly higher in a quiet day of trading as demand and fundamental news remained slow.  Fund buying consisted of an estimated 2,000 wheat contracts.  Just 29% of the winter wheat was headed versus 51% average while cool temperatures are delaying winter wheat maturity.  The crop rated 32% good/excellent versus 60% last year.  SRW conditions were unchanged with Illinois seeing an improvement.  The primary decline in the report was in the state of Washington.  The weekly crop progress report showed Spring Wheat at 43% planted compared to the 5-year average of 63%.  This week the weather in the Midwest is supposed to turn warmer and dryer over the next few days.  Then, Thursday thru Thursday of next week of the Midwest looks wet while the 11-15 day looks drier.
                                                                             
Soybean futures were mostly higher with strength tied to ongoing planting delays.  Old crop saw good gains with the May/July inverse of over $1 heading into expiration.  U.S. soybean cash basis levels remain firm amid tight physical supplies.  Funds sold an estimated 1,000 soybean contracts in today’s trade.  This afternoon’s report revealed just 6% of the crop is in the ground compared to the five-year average of 24%.  Some traders estimate a drop in double-crop soybean acres due to the lateness of the wheat crop maturity.  Analysts were expecting today’s NOPA soybean crush to range from 125 to 127 million bushels versus March’s figure of 137.08 million bushels.  Chinese crush margins have been better for both imported U.S. and South American beans, while domestic beans are running at breakeven or worse depending on when they were acquired.
                                                                                       
Lean hog futures were significantly higher with the pork product market near its highest levels since February 4th due to higher loin values this week.  In addition, the market found strength from June’s slight discount to the cash market.  The cash market in the Midwest remains mostly firm with just a few locations trading $.50 lower.  The 2-day CME Lean Index ending May 10th was $91.73, up from the previous session of 91.31.
                                         
Live cattle futures were mixed with no cash bids reported yet.  Cattle owners were asking $128 or more on a live basis.  Participants on both sides of the market are trying to get a handle on near-term demand and the direction prices will go once trading develops later in the week.  U.S. pasture conditions were rated 34% good/excellent, up from 32% last week but well below 54% for this time last year.  Wholesale prices were quoted higher this morning with Choice up $.78 at $205.91, while Select was $.41 higher at $192.24 on 75 loads. 
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