Good Morning,

Soybeans and wheat are lower to open the week while corn continues it sideways pattern. Recently the only market movers we have seen are coming from the soybean market. China confirmed its total soybean purchases were 5.72 mmt in December. This was below the 6.5 mmt that traders were expecting. This was the lowest December purchase since 2011.
Rains in Northern Argentina and Southern Brazil over the weekend continue the flooding potential. The forecast calls for more rain in those areas this week while central and northern parts of Brazil are expected to remain dry.
Producers with old crop corn to move before spring planting should be looking to make sales with the forecast for no significant movements higher between now and spring. I would look to make these sales prior to the March 29th planting intentions report. Producers that typically move grain in the mid-summer months should look to make some cash sales with current prices in the $3.75-3.80 range and lock in basis on a good portion of the remaining bushels. US carryout of corn is looking to be large again this year which would make current basis levels very attractive.

Have a Safe Day!

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

Good Morning,

Markets are slightly higher this morning after yesterday’s selloff. Yesterday’s weakness was felt in all commodities as bullish updates from China and the US didn’t come. Funds sold 12,000 contracts of corn and 8,000 contracts of beans.
South American weather hasn’t been ideal, but production updates from their government indicate they anticipate the crop to be 95.6 mmt which is up 15.6 mmt from last years.
Look for the markets to remain in a sideways pattern as traders monitor South American weather and the daily saga between the US and China. Traders are hopeful that we will see a China trade deal soon or at least an additional good faith purchase as negotiations progress. The US government shutdown could impact any sales news with the lack of weekly export reports.

Have a Safe Weekend!

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

Good Morning,

Corn is up 1 and soybeans are down 1 to start the morning. Crude oil is up 80 cents this morning but still lingering below the $50/barrel mark that we have been stuck in for the last month. With US/China trade talks progressing, US Commerce secretary Wilbur Ross says both sides can make a deal that works for both. There were rumors yesterday that China bought at least 3 cargos of US soybeans through March, with some sources hearing as many as 25 cargos had traded. These rumors cannot be confirmed due to the government shutdown. In addition to soybeans there continues to be interest in China purchasing corn and wheat from the US in significant quantities. While they are only rumors at this point, it does show that there is a lot of interest in the US and China moving forward.

Have a Safe Day!

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

Good Morning,

Weather is not the only thing that is unseasonable this week as we found out on Friday that the USDA will not be releasing its Crop Production report this coming Friday. The US government shutdown is entering its third week, with no end in sight. The USDA had delayed several major US and world reports because of the shutdown and has said they will set a new date for the Crop Production report once funding is restored. The lack of key data for traders has and will lead to a lot more speculative trading until we can confirm numbers.
The fundamental news that we have to trade for the time being is South American weather and US trade talks. Below normal rainfall and above normal temps are forecasted for Brazil over the next two weeks. Argentina on the other hand is wetter with heavy storms every 1-3 days over the next two weeks.
Chinese and US officials are meeting in Beijing this week for the first face to face talks since President Trump and President Xi Jinping agreed in December to a 90 day truce in the trade war.

Didion is currently offering a contract allowing you to sell cash corn for February 2019 delivery at $3.70 with a potential contract for December 2019 delivery at $4.00. Call for details.

Have a Safe Day!

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

Good Morning,

Currently corn is up 2 and soybeans are up 4 on carryover from yesterday’s trade strength. Traders are adding premium to the market due to dryness in parts of Brazil and flooding in northern Argentina. Rain is expected for the dry areas of Brazil over the weekend and dry for next week. This dryness could have a big impact on the second crop corn plantings.
The USDA will announce their decision today on whether the January 11 final production, Dec 1 grain stocks and winter wheat seedings will be released on the 11th at it regular time or if it will be delayed due to the government shutdown.
Producers with old crop corn to move before spring planting should be paying close attention to the markets and looking to lock in cash or basis contracts. Look to make sales before grain needs to be sold in March to pay bills for spring planting and basis levels widen out. Any potential rally in corn futures will also put pressure on basis levels.
Didion is currently offering a contract where you can sell cash corn for February 2019 delivery in the $3.65-3.70 range with a potential contract for December 2019 delivery at $4.00. Call for details.
Have a Safe Day!

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