Happy New Year!

Early calls are mixed to slightly higher with more of a risk on tone in the market. The Funds are net short soybeans, soymeal and corn and net long Chicago wheat and soyoil. I would expect the funds could begin to cover some of their shorts before the USDA Jan 10 report.
Talk that the list and amounts that China will agree to buy under the Phase 1 deal will not be announced could be negative for the corn. Soybeans could see some buying on the news that China is expected to buy more soybeans than any over commodity. China though may not start buying US Ag goods until February or later.
I would advise producers to put offers in with your buyers for old crop corn and soybeans before the January 10th Production and S&D report. I would target $3.99-$4.08 on the CH CBOT and $9.60-$9.85 on the SH CBOT. We have struggled to trade above these levels over the last 5 years. I believe producers should also be active sellers of the 2020 new crop at current prices.($3.80) With the potential for 94-100 million acres of corn being planted this spring these current prices will not be maintained. We had approximately 90 million acres planted last year and the total prevent plant acres around 11 million the potential for acres to surpass 94 million acres is very high.

Have a Safe Day!

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

Good Morning,

Markets opened softer this morning with corn down 1 and soybeans down 4 as traders wrap up trading for the year.
South American weather remains bearish the markets with very favorable weather over the last week and forecasts for decent precipitation in the 1-5 day forecast. With the lack of any weather concerns for South America and in most cases very favorable weather it will be hard to rally the market on weather.
Yesterday’s export inspections came in below the range of expectations with 409 mmt which is less than half the level seen last year. We are currently 17 weeks into the marketing year and we are 390 million bushel behind last year. The US continues to struggle with not being the most competitive corn on the market with Argentina and Ukrainian corn both less expensive after freight.
Vice Premier Liu He has accepted an invitation to lead a delegation to the US this Saturday where he is expected to sign the phase one deal that would significantly de-escalate the US-China trade war. This is positive news, but I think we need to realize that the damage that has been done over the 18 months is going to linger for years to come. During this trade war, we have invited Brazil, Argentina and Ukraine to the soybean production party and they will remain competitive going forward.
I would advise producers to put offers in with your buyers for old crop corn and soybeans before the January 10th Production and S&D report. I would target $3.99-$4.08 on the CH CBOT and $9.60-$9.85 on the SH CBOT. Looking back over the last 5 years we have struggled to trade above these levels.

I would like to thank all of you for business in 2019 and look forward to serving your grain marketing needs in 2020. May you and your family have a prosperous new year!

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

Good Morning,

Opening calls are mixed to slightly higher as some traders return from the holiday break. Most of the global markets will remain closed which will limit volume in the ag sector. Optimism over the China trade deal and a winter storm that is set to hit the Dakotas and northern Minnesota this weekend into early next week will add some support to the trade. Snowfall of 8-16 inches is expected from Central Nebraska to northern Minnesota and eastern North Dakota. This storm will be very similar to the one that hit this area in October.
Favorable South American weather is in the forecast with moderate rainfall for Brazil over the next 6-10 days and rainfall finishing by Tuesday in Argentina then turning drier over the next 6-10 days.

Today’s light volume could create swings in the market giving traders and producers an opportunity to cash in ahead of the New Year.

Have a Safe Day!

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

Good Morning,

Markets are quiet overnight and this morning as traders take time away from the markets to celebrate the holidays. The CBOT closes at 12:05 today and will re-open at 8:30 am on Thursday morning.

Merry Christmas to you and your families from all of us at Didion!

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

Good Morning,

Corn and beans slightly higher this morning as they trade 2 and 4 higher respectively.

A Chinese consulting company that works with the Government, says that China will have no problem meeting the 40 billion dollars in US goods. They estimate that China will begin purchasing in February and secure 45 mmts of beans, 8 mmts of corn, 5 mmts of wheat and 8 mmts of DDG’s. Livestock would be limited to 1 mmts of US pork and poultry. There is no mention of ethanol, which makes me think this list is far from complete or correct. It’s going to take a mix of many products to get to the 40 billion!
Rains have started to develop in Southern Argentina and will continue into the weekend. Totals should be from .5 to 2.5 inches. A couple system are set to move through in the next couple days. Brazilian will see the same normal weather pattern of rains of 1-3 inches every few days.

Funds are short 95,000 corn and 91,000 bean contracts after yesterday’s trade. I expect their short bean position to be erased in the coming weeks especially if China looks to buy 45mmt of beans. Corn could see some strength on bean follow thru, but I don’t expect much before the January WASDE.

Have a Safe Day!

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