Good Morning,

Corn and soybeans and wheat are all slightly lower this morning as traders look to remain neutral or remove some longs heading into tomorrow’s USDA S&D report. Estimates are for corn and wheat stocks to increase slightly while soybeans are expected to drop slightly from the April report. The USDA will also issue its first official estimate of US/World 2018-19 supply and demand. The trade is looking for lower corn carryout and higher soybean carryout.
Talk that China may not buy US soybeans for the remainder of the marketing year along with Chinese buyers canceling orders for US soybeans keeps the markets on edge.
The US Midwest weather forecast is unchanged as rains are seen moving through the middle of this week, then again over the weekend, and a third system the middle of next week.

Estimates for tomorrow’s report:

17/18 Ending Stocks (Billion Bu)
USDA MAY AVE. ESTIMATE USDA APRIL
WHEAT 1.065 1.064
CORN 2.178 2.182
SOYBEANS .541 .550

18/19 Ending Stocks (Billion Bu)
USDA MAY AVE. ESTIMATE USDA APRIL
WHEAT .930 NA
CORN 1.628 NA
SOYBEANS .535 NA

Have a Safe Day!

Garry Gard
920-348-6844
ggard2didionmilling.com

Good Morning,

Corn is currently up three after yesterday’s planting progress report came in ahead of expectations at 39% completed. This still comes in behind the five year average of 44%. Soybean progress is right on track at 15% as well.

Brazil’s second crop will be expected to drop after a reduction in planted acres, also drought in key producing areas. Beyond this global news, Trump will be announcing plans for the Iran Deal today. Watch for impact of these global events in coming days.

• The USDA will release its May crop production report on Thursday May 10th. This will be the first look at new crop balance sheets for wheat, corn and soybeans.
• Dryness continues in Southern Brazil but there is some rain forecasted in the 6-15 day forecasts.

Have a Great Day!

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

Good Morning,

Futures are starting the week lower as traders take some profit off of the table ahead of this week’s planting progress and stocks report. Tensions are growing after last week’s meeting between negotiations between the US and China proved largely unsuccessful at resolving the ongoing dispute. The US offered up a list of 8 demands that included a cut to the trade deficit by $200 Billion by 2020 and a cutback on government subsidies. For now the dialog will continue but the likelihood that the Trump administration is going to enforce the $50 Billion in tariffs on Chinese goods in late May or June is growing. China is likely to respond to those tariffs with a 25% duty on US soybeans of its own. Essentially, China already has an “embargo” of US beans in place. With China unable to land a cargo before the 25% duties start, it will most likely avoid new US soy purchases.
In other news:
• The USDA will release its May crop production report on Thursday May 10th. This will be the first look at new crop balance sheets for wheat, corn and soybeans.
• Dryness continues in Southern Brazil but there is some rain forecasted in the 6-15 day forecasts.
• This afternoons planting progress is estimated to come in at 37% complete compared to 17% last week and 44% for the five year average. Soybean planting is estimated to come in at 13% complete compared to 5% last week and 13% for the five year average. Weather towards the end of the week may not have been favorable for planting, but progress in the south was fast paced early in the week.

Have a Safe Day!

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

Good Morning,

Despite heavy rains in the upper Midwest the last 24 hours, the markets are under pressure this morning. Futures are trading lower with beans leading the move down after rumors late Thursday of a trade agreement that sparked a rally higher proved false. In fact, the US-Chinese negotiations ended with the US delegation delivering their list of demands; while, China sat largely silent. Corn is currently down 2, soybeans down 12 and wheat down 13! As I stated in yesterday’s comments I expect traders to reduce their short positions heading into the weekend.
Yesterday the Trump administration said it wants China to reduce the trade deficit with the U. S. by $200 billion dollars by the end of 2020. This was part of a list of demands given to Chinese officials at the beginning of trade talks yesterday. China’s state media says that talks between the two countries ended in Beijing with an agreement on how to work through escalating trade disputes but said large differences remain on many matters.
The last 24 hours have demonstrated that trying to trade politics is nearly impossible and there is a lot of uncertainty as these trade wars loom. Producers should be actively marketing grain with these recent rallies and not focus on the weather in their back yard as indicators of where they think the market may or may not go.

Have a Safe Day!

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

Good Morning,

Yesterday corn, soybeans and wheat all ended the session lower as favorable weather forecasts for Argentina and southern Brazil. Soybean meal and wheat have been the drivers for corn and soybeans over the last week. I look for these commodities to continue being the drivers unless we see some changes in the Midwest weather pattern. There has been little to no premium added to the markets due to corn planting progress in the Midwest.
Trade talks between China and the US begin today but skeptics do not expect much to come from these talks as both parties dig their collective heels deeper into the sand in regards to not only grain tariffs, but strategic technologies.
Weekly export sales came in below the 10 week average for both corn and soybeans. Corn was 40.2 mln bu. while soybeans were only 15.3 mln bu.
Funds remain long 152k corn and 178k soybean contracts. Neither of these are recent records, but are very close which could result in some liquidation heading into the weekend.

Three items that traders will continue to monitor in the coming weeks are:
1. US and Chinese trade talks that start today in Beijing.
2. Weather forecasts that call for rain in southern Brazil in the 10-15 day range.
3. US weather forecasts and planting progress.

Markets are weaker this morning with corn down 2, soybeans down 5 and wheat down 4. The Funds remain long 152k corn and 178k soybean contracts. Neither of these are recent records, but are very close which could result in some liquidation heading into the weekend.

Have a safe day!

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