Good Morning,

All commodities are stronger this morning with corn up 4, soybeans up 7 and wheat up 6. The reason for the stronger markets to start the day are reports from Bloomberg that top Chinese and US trade negotiators will speak as soon as next week on progress in implementing the Phase 1 trade deal after President trump threatened to “terminate” the agreement if China wasn’t adhering to the terms.
The planned call will be the first time Vice Premier Liu and USTR Lighthizer have spoken officially about the agreement since it was signed in January. China promised to buy $250 billion worth of US goods and the pressure to catch up in their buying is mounting.
Weather forecasts for the next couple weeks is cooler, but mostly dry which should aid in US producers wrapping up their planting of the 2020 crop. This crop is a long way from being in the bin, but aside from some weather issue during pollination I don’t look for any crop issues to move this market higher.

Producers should be taking advantage of bumps in the market like we are seeing today to get old and new crop sales on the books. Ethanol stocks are still very high and plants are not coming back on line anytime soon. While margins have improved in the last two weeks, they are still deeply in the red. As this crop continues to get in the ground at a record pace and demand remains low, the markets are going to struggle to rally regardless of how much China says they are going to buy. Remember this is an election year and there will be a lot of things said that may not be followed thru on and trade deals could very well be one of them.
Producers can currently lock in $3 old and $3 new crop corn. While these numbers may not seem good, they are a lot better than $2.50-$2.70 that we have seen and are expecting for fall.

Have a Safe Day!

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

Good Morning,

Markets are softer this morning with corn down 2 and soybeans and wheat down 5. Trading interest in corn beans and wheat is down to about zero as China is on a Labor Holiday.
President Trump is pushing to reopen the country, and wants people to go back to work and live their everyday lives. “Will some people be affected? Yes. Will some people be affected badly? Yes,” Trump said. “But we have to get our country open and we have to get it open soon.” Know that President of the United States would be at as much risk as anyone to the disease, and his age profile doesn’t help either.
A bill was introduced in the House Tuesday that would boost the funding to the CCC for 68 billion dollars.
The weather forecast for the next 15 days is on the cool side, but will also be mostly dry. These doesn’t look to be any major planting issues, with weather much better than a year ago.

Have a Safe Day!

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

Good Morning,

Tensions continue to build with China over its responsibility, or lack thereof, in the coronavirus spread. The tensions are currently just a war of words, but the United States is considering asking the World Health Organization to add Taiwan to its board. China would consider that an insult, as it considers Taiwan to be a rebellious state of its own. Despite the war of words, China continues to buy U.S. commodities. The USDA confirmed this morning that China bought another 13.9 million bushels of U.S. soybeans in the past 24 hours, with roughly two-thirds of those for delivery after September 1st. This comes as no surprise, since Brazilian soybeans will be tight by August or September, with additional supplies not coming until its harvest starting in January and February. So, China is buying cheap soybeans that it needs, and perhaps more, simply because they are cheap currently.

Corn planting progress surged ahead last week despite soggy conditions in the Central Corn Belt that temporarily halted planting. As of May 3, 51% of the U.S. corn crop was in the ground. The figure eclipsed last week’s total of 27% as well as the 5-yr average of 39%.
Soybean progress also surged ahead last week with 23% of the crop planted, up from 8% a week ago and leaps and bounds ahead of the 5-yr average of 11%. Planting progress in virtually all states is far ahead of the curve this spring, with the glaring exception being North Dakota.

Have a Safe Day!

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

Good Morning,

Markets are lower this am with corn down 4 and beans down 14.

We are getting off to a rough start this week after comments from President Trump over the weekend indicating that the US will work to diversify its global supply chain away from China. The fear is that the Trump Administration could reissue new tariffs against the Chinese as retaliation for an alleged cover up at the initial stages of the coronavirus breakout.
After all the work that was done on the Phase 1 trade deal, it could all come apart rather easily as it becomes collateral damage. The White House seems to be leading the charge when it comes to finger pointing towards Beijing to accept responsibility for the COVID-19 outbreak.
Weather outlook for the next couple weeks looks like it holds below normal rain for the next couple of weeks. This will be particularly welcome to farmers in the ECB. Temperatures will still be on the cool side for the balance of this week before things warm up next week.
This afternoons planting progress should show US corn at or above 50% complete after last weeks favorable weather.

Have a Safe Day!

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

Good Morning,

Markets are lower to start the month with corn down 3, beans down 6 and wheat down 7.
The markets had a good rally yesterday which is common theme the day after the May roll. Many contracts were liquidated out in the last weed.
President Trump in recent days has told aides that China has to pay for the outbreak and publicly floated demanding billions of in compensation. It has been discussed that China could be stripped of sovereign immunity and enabling the US government and victims the ability to sue for damages. Tariffs again were brought up as is the standard weapon of the President. The chances of getting China to pay compensation for the virus are closer to zero to none.
The weather for the next 14 days looks very normal. There were be instances of light rain here and there, temps will ride a roller coaster of warm, cold, warm. Planting progress does not look to be a problem this year. Corn planting by Monday can be close to 50% and beans at 20%.

Have a Safe Day!

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