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

Good Morning,

Corn is unchanged and soybeans are up 7 to open the week. Reports from Ag Secretary Sonny Perdue last Friday after the markets had closed that China had committed to buy an additional 10 million metric tons of soybeans has added some short term support to the markets. Whether these are old or new crop beans remains to be seen. Perdue also said that China is interested in corn, ethanol, dried distillers grain, beef and poultry. President Trump has said that he will hold off increasing tariffs for now because substantial progress has been made in talks with China.
Mexico stepped up to purchase just under 280 mt of corn overnight in an apparent attempt to secure grain ahead of any Chinese activity.
Fridays Cattle on feed report showed cattle marketed during December was 99.4% of last year, placed on feed was 98.2% of last year and cattle on feed was 101.7% of last year. All three were below trade estimates.

Have a Safe Day!

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