Good Morning,

Markets are higher this morning after it was announced on Saturday that the US and China have agreed to dramatically increase their purchases of US agricultural and energy products. US Treasury Secretary said yesterday that the Trump administration is going to be putting a potential trade war on hold. Included in the framework of the agreement are commitments that include a 35-45% increase in agricultural demand. There is no breakdown of the demand increase, but it is expected to include soybeans, grains and US meat products. I would expect that these announcements should allow the markets to get back to trading fundamentals.
This does not mean that the markets are going to trade significantly higher, but could hold some key support levels in corn and soybeans.
Planting progress this afternoon is expected to show 80% of the corn crop and 55% of the bean crop planted as of Sunday night.

Producers should be taking advantage of these rainy days to talk to their buyers about putting in firm offers on any old crop corn sales they have left to make. You should also be getting sales on the books and putting in firm offers for new crop corn. With levels over $4, producers should have 25% of your 2018 production and 10% of your 2019 crop sold.

Have a Safe Day!

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

Good Morning,

Same story, different day, grain markets are waiting to hear news about either China tariff negotiations or NAFTA compromises. Though, markets are up four for both corn and soybeans, after China announced dropping anti-dumping duties for sorghum.

Over the past month corn has pretty well stayed within a dime either direction of where we are currently trading around $4.00 on the nearby board. With planting about to make great strides this week, there will be low likelihood that there’ll be a planting rally. Start watching for weather concerns in areas of the Midwest, which could add some premium.

Make sure to take some time while planting to think on offers and sales for both old and new crop corn. Currently cash levels are sitting around $3.80 for August and $4.00 for January.

Have a Great Day!

Mitch Giebel
920-348-6861
mgiebel@didionmilling.com

Good Morning,

Corn and Soybeans are both even this morning. Grain is focusing on a China trade agreement headline coming out, as negotiations are continuing to happen today. Speaker Ryan has set today as the date the new modernized NAFTA agreement must be to him, in order to complete.

Over the past month corn has pretty well stayed within a dime either direction of where we are currently trading around $4.00 on the nearby board. With planting about to make great strides this week, there will be low likelihood that there’ll be a planting rally. Start watching for weather concerns in areas of the Midwest, which could add some premium.

Make sure to take some time while planting to think on offers and sales for both old and new crop corn. Currently cash levels are sitting around $3.80 for August and $4.00 for January.

Have a Great Day!

Mitch Giebel
920-348-6861
mgiebel@didionmilling.com

Good Morning,

Corn is currently trading even this morning, trade is currently watching factors including South American weather, Planting Progress Report, as well as NAFTA/China trade negotiation announcements.

The big question lately is how delayed planting progress is affecting the Midwest, currently planting is estimated to be at 55%-60% complete today. This estimate is a big question for where it really comes in today, as the Dakotas, Minnesota, and Wisconsin are behind on progress with continued rain. No bullish response has been seen yet, as farmers are able to plant quite a few acres in less time.

Planting progress should be able to catch up, nationally, with a good weather forecast for the next ten days. Unless there is a big surprise on today’s planting progress report, do not expect a large rally unless major weather issues arise.

Have a Great Day!

Mitch Giebel
920-348-6861
mgiebel@didionmilling.com

Good Morning,

Yesterday’s USDA S&D numbers are in the books and did little to move the markets. Corn carryout was increased for both the 2017/18 and the 2018/19 harvest years. Soybeans were reduced in both with 2018/19 coming in well below the trade estimates. (charts below)
The markets are lower in all commodities this morning as traders discount yesterday’s reports and shift their focus back to weather and political factors. Despite some major delays in MN, ND, SD traders are looking at long term forecasts which show weather changes coming this weekend. Weather is also looking better for Argentina and Southern Brazil which should offer some much needed help.

17/18 Ending Stocks (Billion Bu)
USDA MAY AVE. ESTIMATE USDA APRIL
WHEAT 1.070 1.065 1.064
CORN 2.182 2.178 2.182
SOYBEANS .530 .541 .550

18/19 Ending Stocks (Billion Bu)
USDA MAY AVE. ESTIMATE USDA APRIL
WHEAT .955 .930 NA
CORN 1.682 1.628 NA
SOYBEANS .415 .535 NA

Have a Safe Weekend!

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