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

Good Morning,

Last night’s planting progress showed US corn at 27% complete vs. 7% a week ago and 20% on the five year average. The major corn growing states all came in well above average and are as follows:

Iowa 39% complete 20% average
Illinois 37% complete 31% average
Nebraska 20% complete 16% average
Minnesota 40% complete 19% average
Indiana 18% complete 11% average

Wisconsin came in at 11% complete vs. a five year average for this week of 5%.

Soybean progress was reported at 8% complete compared to 4% on the five year average.

Yesterday’s selloff in corn was tied to planting progress and crude oil. Crude oil values fell $4/barrel to less than $13/barrel. Ethanol demand has been crippled by the drop in crude oil and the decrease in travel by consumers. Several states are revealing their plans to reopen while others are clamping down for another 30 days. Worldwide infections are at 2.98 million. World deaths are now over 206,000. The US’s confirmed number of cases is 966,000 with 48,000 deaths.
Producers need to be moving old crop corn and making new crop sales! Demand destruction in the ethanol industry is not going to come back until consumers get back on the roads. With low crude prices and stocks of ethanol and crude at all-time highs I do not expect to see demand back for another 12+ months. Cash prices for fall corn are currently hovering around $2.90-3.00/bu. Barring any growing issues this spring/summer, these prices will be much better than what we see this fall. My advice is to be pro-active in marketing this year.

Have a Safe Day!

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

Good Morning,

After a weekend of favorable weather and lots of activity in the fields across the Midwest, the markets are taking a hit. Corn is currently down 9, soybeans down 4 and wheat down 7.

• Fridays USDA Cattle on Feed Report showed all US cattle on feed as of April 1 at 11.297 million head, 94.5% of last year. March placements came in at 1.557 million head which is 77% of last year and well below the guess of 79%. Cattle marketed during March were reported at 2.01 million head which is 113% of last year’s numbers.
• Crude oil is down over $5 and trading below $12/bbl again this morning as the nation and world continues to limit travel.
• Planting progress this afternoon is expected to show significant progress across the US, especially in the West. IA, MN, NE, ND, SD, WI all had very favorable weather over the last 7 days for field work. In last week’s progress report IA was 2% complete, but is expected to surpass 50% in this week’s report.

December futures continue to grind lower with the lack of demand and now planting progress and crop size weighing on the market. CZ0 has closed lower ten of the last 14 weeks. CZ0 is currently trading at 3.30 and is projected by many experts to trade sub $3 by the time we get to fall.

Have a Safe Day!

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