Good Morning,

Futures are lower this morning as traders are becoming impatient with just hearing about progress in the negotiations between the US and China and want to see a signed deal before they consider changing their position in the markets.
The USDA will be out with their March WASDE report tomorrow morning. Typically this is one of the quietest of the reactions to a report we will see all year, but given the funds have piled into a large and unusual short position heading into the growing season the trades reaction could be telling ahead of the quarterly Stocks and plantings report on March 29th. This is only the second time since 2007 that money managers have held such a large net short position in early March. President Trump has spoken several times about the FED’s interest rate hike and his desire to see rates again retreat. If the dollar could just retreat some it could be a signal to the bulls that we’ve gone far enough and help spark some additional buying.

Have a Safe Day!
Garry Gard
920-348-6844
ggard@didionmilling.com

March 6, 2019

Good Morning,

Trade was higher yesterday, with much of the day up two-three cents. Several reports will be coming out over the next three days. Today we’ll see prior week ethanol numbers, tomorrow the USDA export numbers, and a monthly stocks report on Friday. Remember that today and tomorrow numbers will clue us for what to anticipate for Friday’s report.

South American weather is still ideal. The dry area in Brazil will see limited rain over the next two weeks. The rest of Brazil has the same forecast it’s had all season. Argentina also stays in a wetter pattern to finish the growing season.

Corn is down one and soybeans are down four to open the day.

Have a Great Day!

Mitch Giebel
920-348-6861
mgiebel@didionmilling.com

Good Morning,

The markets tried to rally yesterday but came into some trouble with a week stock market and a continued bearish sentiment. Farmer sales were heavy yesterday on the rally as a lot of cash is needed with bills pilling up and Spring right around the corner. Producers looking to move corn before planting should be targeting the $3.45-$3.50 range.

South American weather is still ideal. The dry area in Brazil will see limited rain over the next two weeks. The rest of Brazil has the same forecast it’s had all season. Argentina also stays in a wetter pattern to finish the growing season.

Funds remain short 153,000 corn and 60,000 bean contracts after yesterdays close. Traders remain bearish the market and will need some significant news to change their perception.

Corn is unchanged and soybeans are down 4 to open the day.

Have a Safe Day!

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

Corn in unchanged and soybeans are up 5 to open the month and close out the week. February was a rough month on all commodities with corn down 14, soybeans down 19 and wheat down 64 cents! This is the result of a market with no bullish news and a lot of rumors that have not been confirmed. We continue to hear reports of the US and China working out deals to end the tariffs and increase purchases of US products, but to date there has been nothing concrete to give traders confidence. We need to keep in mind that while a deal may sometime get worked out, every day that goes by without sales to China is one less day for us to decrease our stocks and one day closer to another crop to put in the bins. Traders are now estimated to be short 120,000 contracts of corn, 35,000 soybeans and 70,000 wheat.

While I don’t anticipate any major moves, let’s hope that March is a better month for the markets!

Have a Safe Day!

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

Good Morning,

Corn couldn’t hang on to gains yesterday as there was no news on the trade front with China. Trade appears to be waiting for the actual confirmation of a trade pact or news that China is securing US grain before it will give any reaction. This has been the story for the last several months and while it may appear that we are close to a deal, I am not anticipating a dramatic move in the markets anytime soon.
Funds are short 66,000 contracts of corn and 46,000 contracts in the wheat market. This is the shortest they have been in corn sickness the 9th of October! Is this a precursor for where we are headed longer term??
Corn is trading 3 lower and soybeans are 12 lower this morning.

Have a Safe Day!

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