Good Morning,

Markets are softer overnight with corn down 3 and soybeans down 10 as traders take a risk off approach after a US drone strike overnight killed an Iranian General. News that General Qassem Soleimani, the head of Iran’s elite Quds Force was killed in an air attack at the Baghdad international airport prompted expectations of Iranian retaliation against US and Israeli targets. There is no immediate indication how Iran would respond but they have seized oil tankers in the past and shot down US drones. General Soleimani was a top general in Iran that has been killing Americans and other innocent people for Decades.
Iran and China have been growing closer over the last year with tariffs between the US and Chana. Some analysts believe that this recent strike could have major impacts on the US and Chinese trade deals that have been in the works. (The “Phase 1” deal has still not been signed)
South American weather continues to look favorable for improved weather in the southern areas of Brazil and Argentina over the next 7 days. Showers are developing in the drier areas in this timeframe which will continue to keep crops in good shape.
The next USDA report will be one week from today on January 10th. Trade is looking for US 2019 corn production near 13,600 mil. Bu compared to the USDAs last report of 13,661. Soybeans are projected near 3535 mil. Bu vs. the USDA 3550. December 1st corn stocks are estimated near 11,600 compared to 11,937 lasts year. December 1st soybean stocks are estimated at 3.175 compared to last year’s 3.746.

Have a Safe Day!

Garry Gard
920-348-6844
ggard@didonmilling.com

Happy New Year!

Early calls are mixed to slightly higher with more of a risk on tone in the market. The Funds are net short soybeans, soymeal and corn and net long Chicago wheat and soyoil. I would expect the funds could begin to cover some of their shorts before the USDA Jan 10 report.
Talk that the list and amounts that China will agree to buy under the Phase 1 deal will not be announced could be negative for the corn. Soybeans could see some buying on the news that China is expected to buy more soybeans than any over commodity. China though may not start buying US Ag goods until February or later.
I would advise producers to put offers in with your buyers for old crop corn and soybeans before the January 10th Production and S&D report. I would target $3.99-$4.08 on the CH CBOT and $9.60-$9.85 on the SH CBOT. We have struggled to trade above these levels over the last 5 years. I believe producers should also be active sellers of the 2020 new crop at current prices.($3.80) With the potential for 94-100 million acres of corn being planted this spring these current prices will not be maintained. We had approximately 90 million acres planted last year and the total prevent plant acres around 11 million the potential for acres to surpass 94 million acres is very high.

Have a Safe Day!

Garry Gard
920-348-6844
ggard@didionmilling.com

Good Morning,

Markets opened softer this morning with corn down 1 and soybeans down 4 as traders wrap up trading for the year.
South American weather remains bearish the markets with very favorable weather over the last week and forecasts for decent precipitation in the 1-5 day forecast. With the lack of any weather concerns for South America and in most cases very favorable weather it will be hard to rally the market on weather.
Yesterday’s export inspections came in below the range of expectations with 409 mmt which is less than half the level seen last year. We are currently 17 weeks into the marketing year and we are 390 million bushel behind last year. The US continues to struggle with not being the most competitive corn on the market with Argentina and Ukrainian corn both less expensive after freight.
Vice Premier Liu He has accepted an invitation to lead a delegation to the US this Saturday where he is expected to sign the phase one deal that would significantly de-escalate the US-China trade war. This is positive news, but I think we need to realize that the damage that has been done over the 18 months is going to linger for years to come. During this trade war, we have invited Brazil, Argentina and Ukraine to the soybean production party and they will remain competitive going forward.
I would advise producers to put offers in with your buyers for old crop corn and soybeans before the January 10th Production and S&D report. I would target $3.99-$4.08 on the CH CBOT and $9.60-$9.85 on the SH CBOT. Looking back over the last 5 years we have struggled to trade above these levels.

I would like to thank all of you for business in 2019 and look forward to serving your grain marketing needs in 2020. May you and your family have a prosperous new year!

Garry Gard
920-348-6844
ggard@didionmilling.com

Good Morning,

Opening calls are mixed to slightly higher as some traders return from the holiday break. Most of the global markets will remain closed which will limit volume in the ag sector. Optimism over the China trade deal and a winter storm that is set to hit the Dakotas and northern Minnesota this weekend into early next week will add some support to the trade. Snowfall of 8-16 inches is expected from Central Nebraska to northern Minnesota and eastern North Dakota. This storm will be very similar to the one that hit this area in October.
Favorable South American weather is in the forecast with moderate rainfall for Brazil over the next 6-10 days and rainfall finishing by Tuesday in Argentina then turning drier over the next 6-10 days.

Today’s light volume could create swings in the market giving traders and producers an opportunity to cash in ahead of the New Year.

Have a Safe Day!

Garry Gard
920-348-6844
ggard@didionmilling.com

Good Morning,

Markets are quiet overnight and this morning as traders take time away from the markets to celebrate the holidays. The CBOT closes at 12:05 today and will re-open at 8:30 am on Thursday morning.

Merry Christmas to you and your families from all of us at Didion!

Garry Gard
920-348-6844
ggard@didionmilling.com