Good morning,

Corn is up 5 and soybeans are up 9 to start the morning. Favorable weather over the weekend and forecasts for rain in most areas of the Midwest will keep things under wrap early this week. We do have the July WASDE report released at 11am today. My guess is that this report will not be a market mover as I only expect them to update the acres and not adjust yield until the August report. (Estimates below)

The additional acres will be added to corn today, which will increase the carryout.  All other adjustments should be minor.  This report is not a big one, and we do not expect anything bearish.  The market has been washed out hard in corn over the past week, so we think we try and close higher today.

2020/21 Ending Stocks (million bu)

2021/22 Ending Stocks (million bu)

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didionmilling.com

Good Morning,

Lower markets out of the gates today with corn down 4 and soybeans down 2.

Corn futures have dropped 50 cents so far this week and more than 12% from their record in January. China’s top agriculture think-tank has cut its estimate for total corn demand in 2020-21 by 3 million tons to 278 million tons and by 5 million tons for next year. While the researcher kept import predictions unchanged, the decrease in local demand strengthens speculation that foreign purchases may have peaked.

The 10 day forecast has rains coming to the Central US this weekend.  Amounts are expected to be in the 1-2 inch range for Illinois and Iowa.  Indiana and to the Southeast will see up to 3-4.  The rains in the forecast have moved East leaving the West mostly shortchanged.  Temps are really going to heat up out West the beginning of next week.  The heat advances West into the end of the model run.  The forecast has less rain, but it still has enough to keep the market down.  The heat is still going to be a problem for all those out West.

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didionmilling.com

Good Morning,

Corn is down 40 and soybeans are down 55 to start the day! Corn and soybeans are down hard this morning after favorable weekend rains and forecasts for cooler and wetter weather in the 7-10 day.

Over the weekend some rains did fall in the Dakota’s and MN. The 10 day forecast totals will have as much as 2.5 inches of rain for the Central US.  The storms show up on Thursday and build into Friday.  Most all of the rain in the 15 day run is for the later this week, and then a blocking ridge returns.  This looks like more normal summer weather with ridges advancing and retreating allowing rains to move in.

A federal appeals court on Friday threw out a Trump-era Environmental Protection Agency rule change that allowed for the sale of a 15% ethanol gasoline blend in the summer months.

The decision deals a significant blow to the ethanol industry and corn farmers who grow the crop from which the fuel additive is made. They had anticipated increased ethanol demand through year-round sales of the higher blend.

Most gasoline sold in the U.S. today is blended with 10% ethanol. Corn farmers and ethanol refiners have pushed for the government to allow the widespread sale of a 15% ethanol blend.

The 4^th of July is almost always a turning point in the markets. If we come out of this holiday weekend with rain or forecasts for favorable weather you can guarantee the markets have seen their highs. This is the case this year but producers should look at the opportunity in front of them instead of what they missed. We still have old crop corn prices north of $6 and new crop prices north of $5.

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didionmilling.com

Good morning,

Weaker markets to close the week in corn as we are down 6 this morning.

Wednesday’s USDA report is in the books and now off the traders’ minds as they switch their focus to weather. The 10-day outlook is dry across the US.  There are light chances every few days, but no major organized systems.  We have a new tropical storm watch for Elsa, which is supposed to head toward the East coast.  The EU model kills the storm before it makes landfall, where the GFS says it will make landfall into Florida.  This will cause fluctuations in the models over the next few days. Looking at temps, it is mostly a blanket of warm air that covers the entirety of the US. It will stay hot out west, with more normal summer temps in the Central US. The weather looks to be bullish going home for the 3-day weekend, but I do not expect traders to add length to their positions today.

Old crop basis levels have been sliding over the last couple weeks and look to get even weaker. End users appear to be covered for the balance of the crop year and baring any great delay in harvest things will continue to weaken. Anyone holding old crop corn should get basis contracts in place at a minimum.

Reminder there will be no markets on Monday.

Happy 4^th of July!

Garry Gard

920-348-6844

ggard@didionmilling.com

Good Moring,

Markets opened higher this morning with corn currently up 8 and soybeans up 20.

Yesterday’s corn acres came in at 92.7 mln. acres which was above the March report but below expectations. June 1 stocks were in line with expectations. Soybean acres at 87.6 mln were unchanged from the March report and below expectations as were stocks. I believe yesterday and this mornings rally in corn is going to be short lived as the focus will shift to weather starting tomorrow. We saw a big selloff in positions over the last couple weeks as traders prepared for larger acres and favorable weather that we received.

Yesterday, the U.S. Energy Information Administration reported that ethanol production improved to a daily average of 1.058 million barrels for the week ending June 15. That was also the second-highest weekly total so far this year and the seventh consecutive week the daily average has exceeded 1 million barrels. Stocks grew 2% to reach a 14-week high, meantime.

The 10 day forecast for US weather is dry in the North/Northwest and wet most everywhere else.  Amounts are heaviest in the South, pushing up into the lower half of Illinois and most of Missouri.  A dome of heat will enter into the US after July 4th and hang around into the end of the model run.  Temps will be in the 100’s out West and in the 90’s in the East.  The forecast is bullish for some and bearish for others, again the weather is more a jump ball today.

Old crop basis levels have been sliding over the last couple weeks and took a big hit this week. End users appear to be covered for the balance of the crop year. Anyone holding old crop corn should get basis locked in ASAP as it will most likely get worse.

Have a Safe Day!

Garry Gard

920-348-6844

ggard@didionmilling.com