Good Morning,

Weakness late last week and overnight in the corn market as weather forecasts for the month of September continue to show above normal temperatures for most of the Midwest. These warmer temperatures are easing traders fears of the crop not finishing. As a result traders have now taken the market to new contract lows. As of Fridays close, the funds are short 155,000 contracts. They have been sellers of corn in 9 of the last 10 trading sessions.
The September USDA S&D report will be released Thursday at 11am. The trade is looking for corn production of 13.672 billion bushels, down from last month at 13.901. Soybean production is expected to come in at 13.672, down from last month at 13.680. Old crop corn stocks are expected to rise by 40 million bushels, and bean stocks are supposed to decline by 15 million.

Have a Safe Day!

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

Good Morning,

It looks like the markets are going to finish the week the way started it on a downward trend. Corn is currently down 2. Here are some market movers this week and in the coming weeks:

• China and the US plan to hold talks in October which will be the 13th time, lets hope its lucky #13.

• Ethanol production for the week averaged 1.013 million barrels per day which is down 2.41% vs last week and down 6.81% from a year ago. This was the lowest production week since early April with stocks sitting at 23.8 million barrels as gasoline demand starts its seasonal decline.

• Early yields from the south are all over the board, but most are higher than early expectations.

• US weather forecasts remain favorable with no season ending freeze in sight.

Not a lot of upside at the moment as traders continue to trade the lack of demand for US corn and soybeans. Unless something dramatic happens on the demand side of the equation, we are guaranteed to end up with a carryout north of 2 billion bushels. 2 billion bushel carryout equals prices in the $3 – $3.50. Many producers are still sitting on old crop corn that they want/need to move before harvest and the market is not offering many opportunities. If you are one of these producers, give us a call to see what options we have to add to your bottom line in these tough times.

Have a safe weekend.

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

Good Morning,

Markets are lower this morning as selling pressure from the US Dollar strength is weighing on the markets. The dollars strength is coming as the US and China both went ahead with threats to apply new tariffs on each other over the long weekend. On Sunday the Trump administration went forward with plans for new tariffs on more than $100 Billion of Chinese imports with duties pushed back to December 15th on an additional $200 billion of goods. China retaliated with tariffs on US goods, but filed an official complaint with the WTO over the new tariffs from the US. The US and China have not set a date for new face to face talks with mistrust building on both sides following the weekend tariffs. The markets want to see new negotiations underway as worry begins to grow that China will wait for the 2020 presidential election.

Hurricane Dorian is expected to produce a ridge of high pressure over the South Central US beginning tomorrow and lasting most of the week that will bring with it warmer than normal temps. This will keep the threats of frost for the central US at bay at least into the 20th of September.

Have a Safe Day!

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

Good Morning,

Markets continue to trade sideways as we finish out the month. There has been a fair amount of producer selling the last few days locally and across the country as producers price DP bushels or storage bushels before the September 1 storage charges kick in. This has resulted in elevators gaining ownership and making sales to end users. Basis levels in several areas have pulled back (widened) due to the selling as their needs ahead of new crop get filled.
Weekly US corn export sales for 2019/20 came in at 4.68 MMT which was the lowest new crop sales for this timeframe since 2005.
Forecasts for the 10-15 day range are slightly below normal but there is no fear of an early frost at this point. In my opinion even if we do get an early frost, it will likely only result in a day or two of higher trade and then traders will sit back and wait for the final production numbers to come in January. No one should expect the markets to react to an early frost the way they did to the wet spring weather. Demand has disappeared and until this comes back the markets will have limited upside.

Reminder that the markets will be closed on Monday for Labor Day.

Have a Safe Labor Day Weekend!

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

Good Morning,

Grain markets are slightly higher this morning with corn up 3 and soybeans up 5.

We saw some strength in the markets yesterday as Ag Secretary Perdue said that President trump is going to come up with something for the ethanol industry to help create demand that will support the US Farmer. To me this sounds very similar to the comments we have been hearing for the last year and a half about negotiations with China. What is being said and what is actually getting done are two different things. Ethanol margins remain under pressure forcing plants across the Midwest to slowdown or shutdown despite lower corn prices.

The FSA took an unusual step on Tuesday afternoon of updating the reported “certified acreage” and “prevent planting” data instead of waiting until the standard monthly update on September 12th. They increased planted acreage by 821,000 acres from their July report. With this adjustment they are now 3.3 million acres below the USDA’s August report of 90.0. The 3.3 million acres is only 3.5% below the total USDA acres. Soybean acreage was increased by 783,000 acres in their report and now is only 1.9 million below the USDA’s 76.7 million. In my opinion this only strengthens the USDA’s report as there is a large contingency of producers that do not file with NASS and do not carry crop insurance.

So far we don’t see any evidence of a frost/freeze event for much of the next couple of weeks with the forecast actually offering a chance for a little warming in the 11-15 day period. Weather models are going to struggle right now as they try to determine precisely where Hurricane Dorian will make landfall and its ensuing track. Dorian is expected to become an intense category 3 storm when it does come ashore causing considerable damage throughout the Southeast in the process.

Look for the markets to trade sideways to slightly lower as we approach first notice day for September contracts and a three day weekend.

Have a Safe Day!

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