Good Morning,

Markets are a little higher to start the day with what looks to be some short covering ahead of tomorrrow’s report. Corn is up 3 and soybeans are up 2.
Crop ratings last night dropped 1% to 71 percent good to excellent for corn. Beans increased 1% to 74% good to excellent on of the highest ratings on this date ever. Nass ratings suggest corn and bean yields at 5 plus percent above trend. Some expect a major increase in yield on tomorrow’s crop report. WASDA will use some combinations of vegetative grow and average ear weights. FSA will also release acres that have been certified this year tomorrow. We will get to see from year to year data changes. Prevent plant acres will also be in the report.

Trade average guess for the US 2020 corn crop is 15,170 mil bu with a range of 14,915-15,401. The average trade guess for US 2020 beans are 4,258 mil bu with a range of 4,135-4,399. Average trade guess for wheat is 1,833 mil bu with a range of 1,799-1,856.

The average guess for corn carry out is 2,800 mil bu with a range of 2,622-3,061. The guess for soybeans is 525 mil bu with a range of 430-689. The trade guess on wheat is 947 mil bu with a range of 899-1011.

Get your sales made and firm offers in place ahead of tomorrows report. Expectations are for the markets to continue to trend lower with a big crop on the horizon.

Have a Safe Day!

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

Good Morning,

Markets look to continue the weekly trend of lower trade. Corn is down 2 while soybeans and wheat are down 4 and 5 respectively.
Next Wednesday’s USDA report will be the main focus for traders to begin next week and early indications are that the market could head lower into and after that report. Private estimates for corn have been coming in at a yield of 180 bpa + while soybeans have been coming in at 51 bpa +. The USDA’s July estimate had corn at 178.5 and soybeans at 49.8. Ideal weather over the course of the growing season and forecasts for more of the same down the stretch will continue to push yields higher.
Traders are also taking a risk off approach with political tensions on the rise. Late Thursday President Trump signed an executive order prohibiting US residents from doing business with Chinese companies WeChat and Tik Tok. It was the latest in a series of events that has led to rising tensions between the two nations. Delegates from the two economic superpowers are scheduled to sit down on August 15th to discuss the Chinese progress in fulfilling the agreed upon Phase 1 trade deal.

Producers should be locking in sales for corn they have to move this fall. Space is going to become tight everywhere which will be reflected in basis widening.

Have a Safe Day!

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

Good Morning,

Markets are sharply lower this morning with corn down 5 and soybeans down 9 and wheat down 8. Last night’s crop conditions ratings from NASS showed the nations corn crop at 72% G/E compared to the five year average of 66%. 92% of the crop is in the silking stage while 39% is in the dough stage. Soybeans came in at 73% G/E with 85% blooming and 59% setting pods. All of these are ahead of the five year average.
StoneX (FC Stone) estimated that the corn yield would be a record 182.4 bpa and beans a record 54.2 bpa. If realized the corn yield would add more than 325M bu. and 365M bu. in bean production to the balance sheets. For corn that would mean that it’s carryout would top 3B and beans in excess of 700M bu. While the corn estimate was 2% over trend, the bean estimate was nearly 9% over trend and an outright bearish figure.

Hand Sanitizer – Didion has hand sanitizer available in large containers (55gal drums). If you or your business is in need or you know of someone who could use larger quantities, please contact Garry Gard at 920-348-6844 for more details.

Have a Safe Day!

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

Good Morning,

Corn is unchanged, soybeans are mixed and wheat is off 10 to start the week and month.
The soap opera continues as the Trump administration’s threat to ban TikTok, the viral teen phenom, and other Chinese-owned apps could significantly hamper their access global user data, which is an immensely valuable resource in a modern internet economy. Any US decision, which Secretary of State Pompeo said would come “shortly,” is likely to be followed by a similar pressure campaign that prompted some allies to ban Huawei.

This will surely raise the tensions between the US and China leading traders to debate whether or not it will have an impact on the Phase 1 trade deal.

Corn and soybean crop ratings are expected to hold steady or even possibly gain a tad after last week’s rains across the southern half of the Midwest and Delta. Those rains could prove especially significant for soybeans where the rains would produce the most benefit.

Have a Safe Day!

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

Good Morning,

Prices are sharply lower this morning with corn down 5, soybeans down 14 and wheat down 6 on better than expected crop ratings in yesterday afternoons report.

Despite ratings slipping in Iowa, the recent rains helped boost ratings in Illinois, Indiana and Ohio. NASS pegged crop ratings for both corn and beans at 72%. Yield estimates for corn, beans and spring wheat are on the rise and traders know that the feedback farmers are providing now will be the data included in August 12th crop report.
The historically high ratings indicate a yield potential that is some 5% higher than trend and puts corn yield in the neighborhood of 184-187 bpa and the beans anywhere from 51 to 52.5 bpa. Yields of that magnitude will add substantial bushels to the 2020 production potential and ultimately ending stocks. We have to remember that for every bushel above trend adds nearly 85M bu. to the balance sheets of both.

Traders will continue to monitor the situation with China to see if they look to purchase any soybeans on the pullback in the market. With any supply issues off the table for moving the market higher, the CBOT is now in a position of finding prices that help improve demand which means lower prices!

With a higher quality crop on the horizon, there has been a lot of talk about end users and elevators adjusting discount schedules for the new crop to discourage producers from delivering old crop(2019) on new crop(2020) contracts. Higher Test Weight, Foreign Material and Damage discounts are expected as they don’t want to deal with the poor quality the 2019 crop gave us. Farmers with old crop bushels have basically run out of time and need to empty out the bins ASAP.

Have a Safe Day!

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