Good Morning,

Prices are higher to finish the week with corn up 2 and soybeans up 9 to finish the wek.

It is a same story on a different day as soybeans score new highs for the rally which is dragging the grains along for the ride. Fund managers appear willing to continue to extend their length until someone or something pushes back. Farmers have been modest sellers on the rally, but most are waiting until they run the combines before becoming too aggressive.
China’s vegoil markets have been rising rapidly as reports of increasing consumer demand coupled with China actively booking palmoil imports. The big rally in prices there has spilled over into our soyoil and soybeans. Futures are now back to their best level since January and in a position to challenge the a monthly downtrend on the charts that goes all the way back to 2008.
President Trump announced a new $13B package of CFAP overnight that is expected to be outlined at some point today by the USDA. This second round of CFAP is designed to help cover farm losses related to COVID-19 for the period of April through December. The program will raise pressure on Congress to replenish the CCC with additional funding considering they will need approximately $7B for crop revenue payouts. The CCC is looking for reimbursement for around $30B in payments made to US farmers in 2019. If all aid is utilized it would raise the total government aid provided to farmers in 2019 to a record $50B.

Have a Safe Day!

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

Good Morning,

Markets are lower this morning with corn down 3 and soybeans down 6 as traders look to take some profits from the recent rally in all commodities with weather looking very favorable for harvest in the coming weeks.

Crop condition ratings slipped a little more this week with corn losing 1% and beans losing 2% to 60% and 63%, respectively. The bean drop was bigger than what the trade was expecting. 41% of the corn is now mature with 5% of the crop in the bin. 37% of the beans are dropping leaves with the USDA set to begin reporting harvest data next week.

China continues to secure US soybeans on a seemingly daily basis with Sinograin the reported buyer. The talk is that the Chinese bought another 6 to 10 cargoes of US beans again on Monday. We have confirmation of some of that business on the daily system this morning with the announcement of a sale for 132 TMT of soybeans to China along with another 132 TMT sale of beans to Unknown and 120 TMT of corn to Unknown.

The EPA denied 54 retroactive waivers of the RFS. There are still 14 applications that remain pending. What happens with those remaining ones is uncertain with gasoline consumption clearly down here in 2020. Also in question is what about all the promised government funding for refiners.

The corn and soybean markets may encounter more hedge pressure next week as harvest gains steam.

Have a Safe Day!

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

Good Morning,

Markets are firmer to start the day with corn up 2 and soybeans up 9 ahead of todays report. Estimates for todays report can be found below and will be updated after the 11am release.

2019/20 carryout (billion bu.)
September 11 report Ave. Est. August report
Corn 2.253 2.234 2.228
Soybeans .575 .600 .615

2020/21 carryout (billion bu.)
September 11 report Ave. Est. August report
Corn 2.503 2.451 2.756
Soybeans .460 .465 .610

2020 Yield(bpa)
September 11 report Ave. Est. August report
Corn 178.5 178.3 181.8
Soybeans 51.9 51.8 53.3

2020 US Production (billion bu.)
September 11 report Ave. Est. August report
Corn 14.900 14.898 15.278
Soybeans 4.313 4.295 4.425

Make sure you have firm offers in for corn and soybeans ahead of the report, the highest prices are often seen 3-5 minutes after the report is released.

Reminder that we will be open for grain receiving on Saturday from 7-5.

Have a Safe Day!

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

Good Morning,

Markets are lower overnight and this morning as Fridays report becomes the focus for traders. Last nights crop ratings showed corn dropping slightly to 61% G/E while soybeans remained unchanged at 65% G/E. Corn % dent jumped to 79% which is up 16% from last week and 8% higher than the average. This should come as no surprise as this years crop has been ahead on maturity all season.
Fridays report will be the focus for traders as they look to see where production and carryout end up. Current estimates show the 19/20 corn carryout up slightly from the August report(6 million bu) while the 20/21 carryout is down 305 million bu. Yield estimates are guessed at 178.3 bpa which is off from the USDA’s August estimate of 181.8. 2020 US production is estimated at 14.898 billion bu.
While these numbers do appear to be bullish the markets, we are still looking at stocks to use ratio north of 15%. Historically we need this percentage below 10% to see corn near $4/bu!
Take advantage of the recent rally and don’t get caught speculating on how high prices may go. Manage your risk and you will sleep better at night!

If you have old crop corn to move call to find out what options we have for you. In addition to solid prices we have a couple other options that will allow you to finish cleaning out your bins.

Have a Safe Day!

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

Good Morning,

Markets are quiet this morning with corn and soybeans both hovering around unchanged following the three-day weekend. The recent rally has given producers a good opportunity to market grain ahead of the upcoming harvest.
Friday we get a look at the USDA’s September Crop report. This will be one of the most important reports in years following the derecho event in Iowa coupled with the flash drought yield losses.
President Trump vowed to end America’s reliance on China. The President threatened to punish any American company that creates jobs overseas and forbid those doing business with China from winning any federal contracts. The worsening political rhetoric has the pros wondering if Beijing will fulfill it pledges on purchases for the Phase 1 trade agreement. China has been a sizable buyer of US beans, corn and even wheat, but continue to lag on other Ag products, manufactured goods and energy. Money managers will likely pay close attention to this situation to see what China’s reaction to President Trump’s new hardline stance is.
The weather models are in agreement as they offer consistently cool/wet outlook for this week. Extended forecasts show some warming and drying out next week. In the meantime low temperatures will dip into the mid to lower 30’s across North Dakota and far northern Minnesota tonight. Otherwise there is no frost event on the radar that would lead to a premature end to the 2020 growing season.

Have a Safe Day!

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