Good Morning,

Softer markets this morning with corn and soybeans down 1 and wheat down 3. The funds are in the midst of rolling their May shorts to July, but we have seen very little movement to the upside so far this week with this action. Traders are holding a record short position in the corn market of 302,000 contracts.
Traders are continuing to look for news to trade, but the lack of fundamental news continues to be the story. US weather shows a warming trend over the next couple weeks with mixed forecasts for rain depending on what weather model you follow. US and Chinese trade news will continue to do nothing to the market until we get some concrete agreements in place.
Export sales were disappointing this morning for beans as they came in at the lower end of expectations with just 14 million bushels. Corn was a little better than expected with 37.3 million bushels. Corn exports are running above what is necessary to reach the USDA’s current estimate for 2018/19, however, the large crops coming out of South America will probably have crops becoming available soon. In fact offers out of the Gulf are running about 35 cents more than ones out of Argentina for delivery from June to August. This will most likely make matching last years pace for the remainder of the marketing year an uphill battle unless the World surplus begins to shrink .

Reminder that the markets are closed tomorrow in observance of Good Friday.

Didion Grain Receiving will be closed Friday 4/19/19.

Have a Safe Day!

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

Good Morning,

Corn is currently trading up three and Soybeans up six. Short covering is taking place today, after trade is seeing the effects on delays that last week’s snow storm caused. This afternoon USDA will release planting progress, with an estimate being that USDA will note 6% of the U.S. corn crop planted.

The Japanese are in Washington this week to talk trade with President Trump. Not much activity is expected as much of the U.S trade delegation is working on finishing up talks with China. With that being said, U.S. and China are close to agreeing on enforcement mechanisms of their trade deal, and closing on it entirely (So they say).

Please update offers on old crop and new crop, even with a flat market we need to be prepared if there is a small rally that could meet some price targets. Consider some new crop bids sitting around $3.80 January to close to $4.00 for Spring and Summer of 2020.

Have a Great Day!

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

Good Morning,

Corn is currently trading even, and Soybeans up two. The second bomb cyclone has delayed spring fieldwork across much of the Midwest by bringing ice, snow, and even blizzard like conditions to most areas. Trade is watching as the full affects are yet to be seen. China and US trade talks continue, with China making a huge pork purchase recently.

Secretary of Ag Sonny Perdue announced there is no program to aid the farmers affected with grain and storage loss in Nebraska, flooding damage resulted from the Mid-March winter storm. However, Iowa and Nebraska lawmakers announced measures to aid those affected with tax and retirement withdrawals.

Please update offers on old crop and new crop, even with a flat market we need to be prepared if there is a small rally that could meet some price targets. Consider some new crop bids sitting $3.80 to close to $4.00 for Spring and Summer of 2020.

Have a Great Weekend!

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

Good Morning,

Markets are starting the day lower with corn down 2 and soybeans down 1. USDA S&D numbers will be released at 11am this morning and estimates are for higher stocks in all three major commodities. (see estimates below) To see what the uphill climb prices face, we not only have to look at US stocks, but world stocks.

USDA 2018-19 ending stocks(billion bushels)
USDA April Average Est. USDA March
Corn 2.035 1.991 1.835
Soybeans .895 .898 .900
Wheat 1.087 1.072 1.055

USDA World ending stocks (Million Metric Ton)
USDA April Average Est. USDA March
Corn 314.01 311.16 308.53
Soybeans 107.36 108.04 107.17
Wheat 275.61 271.00 270.53

Last night’s Crop Progress report showed the US at 2% planted for corn. Leading the way was Texas with 53%, Tennessee with 8% and Missouri, Nebraska and Kentucky all at 2%.

Have a Safe Day!

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

Good Morning,

Markets are up two in beans, 1 in corn. News is pretty limited on trade talks this morning. Meetings wrapped up, and at this point further talks will be via video conference for the remainder of the week. No date is set for a signing of a new agreement. Chief economist Kudlow stated that there are still issues to be worked out, but progress was made. More of the same, as this looks to drag out for eternity. “If we have a deal, then we’ll have a summit,” President Trump said.

Historic March floods are having impact on the ethanol industry. Ethanol shortages are pushing gas prices above 4 dollars in California, the highest price since 2014. Supply disruptions from rail, and currently close to 13 percent of plants are offline.

Tuesday the USDA will release updated supply and demand reports. The USDA will factor in the stocks report for March, but will not work in acres for 2019 production yet. There were 300 million bushels of corn that will need to be adjusted down in feed, exports and ethanol. Carryout is expected to be close to 2 billion bushels for corn. Changes of less the 50 million bushels are expected in soybeans. Chinese bean purchases will keep bean stocks from growing. Overall the S&D report will have a bearish tone, but it is also mostly priced into the market.

Have a Great Day!

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