Good Morning,

Markets are slightly higher to start with corn up 2 and soybeans up 5. This comes as little consolation after Friday’s large selloff following the USDA report. (report below)
Higher estimates of March 1 stocks and 2019 acres sent the markets lower on Friday. The March 1st stocks showed on farm stocks above last year with farmers owning 60% of the corn, 47% of the soybeans and 23% of the wheat. Corn saw the biggest jump in acreage with an increase of 3.6 million acres. Planting intentions for “principal crops” came in at 315.4 million acres which is down 4.2 million from 2018.
Based on satellite data it is estimated that 1 million acres of farmland was flooded from the Dakotas to Missouri and beyond due to the weather in March. While this is a large area, there is plenty of time for much of it to dry up and be planted this spring. This is why traders have not added any premium to the markets based on this flooding.

Quarterly Stocks (billion bushels)
March 2019 Average Estimate March 2018
Corn 8.605 8.335 8.892
Soybeans 2.716 2.683 2.109
Wheat 1.591 1.555 1.495

US planting Intentions (million acres)
USDA March 2019 Average Estimate USDA 2018 Final
Corn 92.792 91.332 89.129
Soybeans 84.617 86.169 89.196
Wheat 47.339 46.915 47.800

Have a Safe Day!

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

Good Morning,

Markets are quiet this morning as traders prepare for the USDA’s quarterly stocks and planting intentions report that will be released at 11am today. Estimates for today’s report are listed below.

Quarterly Stocks (billion bushels)
March 2019 Average Estimate March 2018
Corn 8.335 8.892
Soybeans 2.683 2.109
Wheat 1.555 1.495

US planting Intentions (million acres)
USDA March 2019 Average Estimate USDA 2018 Final
Corn 91.332 89.129
Soybeans 86.169 89.196
Wheat 46.915 47.800

Brazil’s weather forecast has overall drying during the next two weeks in central and southern Brazil and Paraguay as rains will be concentrated in northern Brazil and further relief from dryness will occur in northeastern Brazil. Argentina’s weather forecast has good harvest conditions during the next ten days. Argentina’s corn harvest is running behind last year, but fight on pace with the three year average.

The funds continue to defend their near record short position as they are short 270,000 corn, 65,000 soybean and 76,000 wheat contracts heading into today’s reports.

While I do not expect any dramatic moves in the markets following todays report, these are typically the days that offer the best opportunity to capture a short move higher in the markets. Make sure you have firm offers in with your local grain buyer prior to the 11am report.

Have a Safe Day!

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

March 26, 2019

Good Morning,

Futures are mixed in a low volume trade with the traders unwilling to add to their positions ahead of the key reports from the USDA on Friday morning. Beans were down 3, corn off 1 and winter wheat up 2 to 4 cents. With the funds already excessively short the market, prices should be supported on the breaks.
Soybeans are beginning to feel some pressure from S. America as farmer selling in Argentina increased this week. This is not a big surprise with beans originating out of Argentine ports running between 5 to 15 cents below the Board. This will limit US sales to other World importers with the FOB premium for US beans over Argentine ones growing wider over the last four weeks.
Producers are advised to get firm offers in with us before this week’s report and before you head to the field. Last week we were able to fill some $3.90 offers for February and March of 2020! These are great prices and more producers should be taking advantage of December thru May 2020 prices in the $3.75 to $3.95 range. Give us a call today to put in your offers.

We will be at the WPS Farm Show in Oshkosh this week on Tuesday, Wednesday and Thursday. Visit us in booth A3518.
Have a Safe Day!

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

Good Morning,

Markets are steady to start the week with both corn and soybeans hanging around unchanged. Last week resulted in a 5 cent gain in corn futures and a 5 cent loss in soybean futures. The funds remain short 265,000 corn and 61,000 soybean contracts.
Flooding in the western states and the talk of lost acres this spring has caught the traders attention, but we have yet to see any trade reflect this so far.
This week may be the best chance for the markets to rally with month end, quarter end and USDA reports on Friday. Fridays report will show quarterly stocks along with the first look at planting intentions for US acreage. With the funds sitting on record shorts I would not be surprised to see a small rally early in the week.
Producers are advised to get firm offers in with us before this week’s report and before you head to the field. Last week we were able to fill some $3.90 offers for February and March of 2020! These are great prices and more producers should be taking advantage of December thru May 2020 prices in the $3.75 to $3.95 range. Give us a call today to put in your offers.

We will be at the WPS Farm Show in Oshkosh this week on Tuesday, Wednesday and Thursday. Visit us in booth A3518.

Have a Safe Day!

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

Good Morning,

Corn is trading 2-3 higher this morning after talks yesterday that China had stepped up and booked its first purchase of US corn. Corn prices have risen despite fund managers increasing their record net short position. The USDA confirmed yesterday’s rumor with an announcement on the daily system that the Chinese had purchased 300 MT of corn. This is a good sign with the US negotiating team arriving in Beijing this weekend.
I don’t expect the market to move dramatically either direction in the next several months unless we see a significant weather issue. (Excessive wet spring or widespread summer drought) Next Thursday the USDA will release its quarterly stocks report along with the 2019 planting intentions. Estimates are for corn acres to increase by 2-3 million acres. I believe the market has 1-2 million more acres traded so far and could trade lower if we come in at 3 million.

GO BADGERS!!

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