Good Morning,

Weather is not the only thing that is unseasonable this week as we found out on Friday that the USDA will not be releasing its Crop Production report this coming Friday. The US government shutdown is entering its third week, with no end in sight. The USDA had delayed several major US and world reports because of the shutdown and has said they will set a new date for the Crop Production report once funding is restored. The lack of key data for traders has and will lead to a lot more speculative trading until we can confirm numbers.
The fundamental news that we have to trade for the time being is South American weather and US trade talks. Below normal rainfall and above normal temps are forecasted for Brazil over the next two weeks. Argentina on the other hand is wetter with heavy storms every 1-3 days over the next two weeks.
Chinese and US officials are meeting in Beijing this week for the first face to face talks since President Trump and President Xi Jinping agreed in December to a 90 day truce in the trade war.

Didion is currently offering a contract allowing you to sell cash corn for February 2019 delivery at $3.70 with a potential contract for December 2019 delivery at $4.00. Call for details.

Have a Safe Day!

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

Good Morning,

Currently corn is up 2 and soybeans are up 4 on carryover from yesterday’s trade strength. Traders are adding premium to the market due to dryness in parts of Brazil and flooding in northern Argentina. Rain is expected for the dry areas of Brazil over the weekend and dry for next week. This dryness could have a big impact on the second crop corn plantings.
The USDA will announce their decision today on whether the January 11 final production, Dec 1 grain stocks and winter wheat seedings will be released on the 11th at it regular time or if it will be delayed due to the government shutdown.
Producers with old crop corn to move before spring planting should be paying close attention to the markets and looking to lock in cash or basis contracts. Look to make sales before grain needs to be sold in March to pay bills for spring planting and basis levels widen out. Any potential rally in corn futures will also put pressure on basis levels.
Didion is currently offering a contract where you can sell cash corn for February 2019 delivery in the $3.65-3.70 range with a potential contract for December 2019 delivery at $4.00. Call for details.
Have a Safe Day!

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

Good Morning,

Corn is up 1-2 this morning as traders continue to look for direction from the other markets as trade awaits any positive news from the demand side. The USDA’s chief economist said they will decide tomorrow if they will delay the crop reports scheduled for January 11th due to the partial government shutdown. There has been no deal or indication that a deal would happen to end the shutdown. President Trump and key Democrats are meeting tomorrow as Democrats take over the House today.
Soybeans are up 5-6 this morning after yesterday’s strong performance on rumors China was looking to buy 1-2 mmt of US soybeans. US and Chinese officials are set to meet face to face starting January 7th.
I would advise producers to get firm offers in with your local grain buyers for the 2018 and 2019 crops. I don’t expect any adjustments in the USDA’s Supply and Demand charts to be big enough to move the grain markets significantly higher. With more corn acres next year and South American soybean starting to hit the market place in the next couple weeks, I expect more sideways movement in the markets with few opportunities to capture higher prices. The best chance to catch higher prices on any bounce are with firm offers. Producers should target $3.50-$3.75 for their next old crop sales and 3.70-3.75 for their next new crop sales. We are currently in the 70th percentile for the last five years with prices in the $3.70-3.75 range for fall 2019 delivery. Any sale that can be made at or above this percentile is strongly recommended. If we increase corn acreage in 2019 by 4-5 million acres next year and drop yield back to 175 bpa we could very easily push next year’s carryout over 2.0 billion bushels. This is why I would advise producers to have a minimum of 20% of your fall corn sold at this level.

Have a Safe Day!

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

Good Morning,

Ag futures prices are trading lower as traders look to put an end to what has been to say the least a very tumultuous 2018. Grain markets are closed New Year’s Day. March corn continues to hang around the $3.75 price level. After a difficult second half to December, March beans are up 5 and trading within striking distance of the psychologically important $9 level to close out the year.
Grain markets and financial markets alike are eager for more news concerning U.S.-China trade negotiations, after President Donald Trump reports he had a “very good call” with Chinese President Xi Jinping last Saturday. News of the phone call between the two Presidents is helping to support the summer row crops with President Trump proclaiming that “big progress” is being made on a variety of trade and IT/IP fronts between the two nations.

I look for the markets to close lower today with month end and year-end sales as traders regroup to start the New Year.

Have a Safe and Happy New Year!!!

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

December 28, 2018

Good Morning,

Corn opened up two, and Soybeans up ten. Low trade volume with the second to last trade day of the year. There has been a lot of uncertainty between the trade war and government shutdown still in the picture, trade is looking for any ideas on volumes that could possibly be booked on Chinese purchases. With that being said, USDA weekly export numbers will not come out today due to the government shutdown.

Brazil’s Mato Grosso region has questions on their potential soybean yields, as some farmers are reporting dryer conditions. Do not expect any major yield adjustments, but be aware of some of those headlines on South American crops affecting our markets.

My belief is that with end of month/year positioning there looks to be a more positive than negative start to 2019. News about a US trade delegation came in yesterday, with a date of January 7th meeting in Beijing. Watch for news from this, as China could be potential buyers of corn, ethanol, and ddgs. Take time to call and talk on either basis or cash levels before or after the holidays. Current cash levels to keep in mind: March $3.50, $3.70 July, and $3.75 December.

Have a Great Weekend!

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