Good Morning,

The markets are trading both sides of even in corn and up slightly in soybeans. Yesterday was a bad day in the bean markets. The demand destruction from China is crippling this market. The word is that China will lose 40% of its pork production due to the swine flu. They will not need to buy very many beans this year and this year’s marketing season is just about over. Hopefully this demand destruction will be resolved for next year’s crop in the coming weeks. The Chinese trade delegation is coming to Washington next week and a deal is expected to be reached. Rumors are that a signing date will be scheduled with President Trump and President Xi for some time in May. (Fingers crossed)
Funds are still holding record short positions as they are currently short 300,000 corn and 166,000 soybean contracts.
The forecast for the next 10 days remains cooler and wetter with spotty chances for producers to get into the fields. We may need that 10 days of wet weather to get the markets to react as the recent delay has done nothing to spur a rally.
My caution for producers is to make sure you make sales on any rally we see due to weather. Every weather market is VERY SHORT lived regardless of how severe it may seem. I would advise making cash sales in the $3.45-3.50 range for May/June. I would target $3.60-3.70 for new crop sales. I would suggest making sales for next February/March in the $3.75-3.80 range.

Have a Safe Day!

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

Good Morning,

Quiet markets overnight as corn was up a half and soybeans were up 1. We saw early support in the market yesterday with a two week forecast showing cooler and wetter weather, but the record short position for traders continued as they sold off and the markets closed unchanged. Last nights corn planting progress came in at 15% complete which is up 9% from last week and the same as last year this time. We are behind the 5 year average of 27%. I believe we will have to get into the second full week of May with major planting delays before the market will begin to question the potential size of this years crop and add any premium. Traders will continue to monitor forecasts for direction.
The US and China are back at the table in Beijing today to continue the never ending trade talks. We don’t expect any resolution this week, but poor economic data coming out of China could spur them to act a little faster.
Traders were short 327,000 contract of corn and 149,000 contracts of soybeans after last nights close. This is down from last Tuesday’s record as traders take some profits heading into month end.

Producers should actively sell any rallies that we see in the markets as the potential weather market rally if seen, will not last long at all! I would advise selling cash corn in the $3.35-3.45 range for spring/summer and $3.50-3.60 range for fall delivery.

Have a Safe Day!

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

Good Morning,

Markets opened lower again this morning as the funds continue to drive the market by adding more short positions as weather provides no issues for planting. The funds combined position in corn, wheat and the bean complex is currently short 650,000 contracts. Last year on this date they were a combined long 400,000 contracts. Trade issues, production, surplus and weather have added to the 1 million contract swing in the last year. Corn is 25 cents lower than a year ago while soybeans are $1.50 lower than a year ago.
Don’t forget to put firm offers in for old and new crop corn before you head toe the fields. You don’t want to miss an opportunity to capture the best market for your crop because you were too busy planting it.

Have a Safe Day!

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

Good Morning,

Corn made new contract lows yesterday and took out the low from two weeks ago. The lower trade has been influenced by a forecast. The outlook for the majority of the Midwest looks to be conducive to getting some field work done over the next several days before spotty storms hit the corn belt next week.
Last night’s crop progress report showed 6% of the US corn and 1% of the US beans have been planted. This compares to the 5% for corn last year and 2% for beans last year. Don’t look for the markets to add any premium to this market based on late plantings unless we get to the 2nd week of May and are significantly behind.
Funds closed yesterday’s trade short 349,000 contracts and 101,000 bean contracts! Much to everyone that is long the physical crops, these long positions are not a catalyst for the markets to rally. Every short position that traders are currently holding is in the green! (profitable) Producers should be aggressively selling any small bounces in the market as weather this summer may be the producers only hope to move the markets slightly higher.

Don’t forget to put firm offers in for old and new crop corn before you head to the fields. You don’t want to miss an opportunity to capture the best market for your crop because you were too busy planting it.

Have a Safe Day!

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

Good Morning,

Markets are lower this morning as weather forecasts show a favorable outlook for much of the next week. Open interests continues to grow contrary to seasonal trends and despite the funds holding record short positions. Traders are currently short 315,000 contracts of corn which is 15% higher than the previous record.
The weather this week looks favorable for farmers to get into the fields and being planning this year’s crop in the northern corn-belt. Forecasts are for the warm/dry conditions this week will be followed by cooler and wetter conditions next week. Trade will add very little to the market in terms of weather premium unless we get into the first couple of weeks of May with continued wet weather.

Have a Safe Day!

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