Good morning,

Markets are trying to bounce after yesterday’s selloff as corn is up 12 and soybeans are up 11 to start the day.

Yesterday’s WASDE increased corn and soybean carryout for the 2021/22 crop and corn for the 2022/23 crop as expected. Most traders expected these types of numbers with the increase in acreage we saw in last months report.

2021/22 US Ending Stocks(million bu)

2022/23 US Ending Stocks (million bu)

Ukraine said on Wednesday that a deal to resume grain exports blocked by Russia appeared very close as four-way talks prepared to resume, raising hopes of an end to a standoff that has exposed millions to the risk of starvation.

Ukrainian Foreign Minister Dmytro Kuleba told Spanish newspaper El Pais ahead of the talks in Istanbul between Ukrainian, Russian, Turkish and U.N. officials that Kyiv believed it was now very close to striking a deal for exports to resume.

“We are two steps away from a deal with Russia. We are in the final phase and now everything depends on Russia,” it quoted him as saying. Other participants in the negotiations were more cautious, saying much remained to be agreed. Ukraine expects monthly grain exports to rise by 500,000 tonnes as a result, Deputy Infrastructure Minister Yuriy Vaskov said. Ukraine is also negotiating with Romania and the European Commission about increasing shipments through the Sulina canal, he said. (Reuters)

The market is about halfway trading weather but is mostly trading the high dollar and the Fed’s crusade to lower inflation.  The US Labor Department is expected to release an inflation figure of 8.6-8.8% today.  The bank lending rate is supposed to be increased by .75% later this month.  The Fed probably feels like they are getting what they want with the drop in energy prices.  The high dollar allows the US to buy world products cheaper but will go to expense of exports.

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didioninc.com

Good morning,

Markets are trying to hold on and stop the recent selloff with corn up 1 and soybeans up 8.

Favorable weather over the weekend and rains continuing this week along with temperatures that are not as hot as they had forecasted last week is weighing on the markets. Add in the recession market tone and you can see why the funds are liquidating their long positions in the grain markets. After yesterday close, the funds were reported long 150,000 corn and 80,000 soybeans.

National corn condition ratings fell three more points this week to 64% good/ excellent, now down from 65% last year and the 67% five-year average; corn silking went from 4% to 7%, down from 9% LY and the 11% 5YA.

Mato Grosso’s ag institute IMEA is reporting the states corn crop at a record 39.2 MMT in 2021/22, with 55% harvested as of July 1. This is putting pressure on US grains for export with more available at a cheaper price.

I look for the new crop markets to stabilize near the current levels as we are now back to crop insurance levels. Old crop may continue to have pressure as we move forward.

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didioninc.com

Good morning,

The selloff continues this morning with corn down 15 and soybeans down 38 to start the day.

Yesterday’s report was pretty much in line with the average trade guesses except for soybean acres.

USDA Quarterly Stocks (Billion Bushel)

USDA June Acreage (Million Acres)

The Stocks came in about as on the nose as they possibly could.  Exports have been limited while feed, ethanol and crush have been strong.  This was about the closest to the numbers for a June report that I can remember.  Unfortunately, this did not keep the market from totally liquidating their positions.  The funds are net long just over 200k contracts after yesterday’s selloff. The last time they were this low was October 13, 2021. The last time they were long less than 200k contracts was September 21, 2021. I look for us to break that 200 mark easily today.

The weather forecast is a little bearish and think there were a lot of bets still in the market for the report.  Sometimes these reports are trend changers and others they are more of a one-off event.  We won’t know that until July 5^th when traders return from their holiday weekend and shift their focus to weather. Unfortunately, the highs appear to be in for the year and anyone sitting on old crop corn is going to have to be content selling $7 corn instead of $8. (how strange does that sound “settle for $7 corn”)

Have a safe weekend!

Garry Gard

920-348-6844

ggard@didioninc.com

Good morning,

Markets are down sharply this am ahead of the USDA report. Corn is down 15 while soybeans are down 12 and wheat down 9.

June report traditional is one of the most volatile reports and we expect the history will repeat itself today as well. Big range of trade guesses for acres and stocks are an indication of this.

USDA Quarterly Stocks (Billion Bushel)

USDA June Acreage (Million Acres)

Forecasts are calling for heat over the next two weeks, but there is rain coverage in most of the central US weather forecast is warmer after July 4th, with a high-pressure Ridge over west and plains.

While basis levels have firmed across the Midwest, they have not offset the recent selloff in the CBOT, indicating that producers and commercials have been sellers of corn over the last couple weeks. Following today’s report, look for trade to focus on weather as we head into the mid-summer months.

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didioninc.com

Good morning,

Corn markets were stronger overnight with corn up 9 and soybeans up 17.

Monday’s crop progress showed US corn at 67% G/E which is down 3% from the previous week and right in line with the 5-year average. Wisconsin was 78% G/E which is down 4%, but 5% above the five-year average and 3% better than last year.

The Funds continued their liquidation yesterday and appear to be set for Thursday s report. Estimates for Thursday are listed below. The markets have some technical support at current levels and should remain neutral until the report. Temperatures across the corn belt remain warm, but chances for precipitation are good heading into next week. Historically a crop that is off to a good start and favorable weather forecasts heading into the fourth of July weekend result in lower markets following the holiday weekend. I would suggest getting some new crop sales on the books ahead of the weekend if you are less than 40% sold.

USDA Quarterly Stocks (Billion Bushel)

USDA June Acreage (Million Acres)

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didioninc.com