Good Morning,

Futures prices at the CBOT are trading mixed in a bit of a Turnaround Tuesday with beans up 3, corn down 3 following yesterday’s surge in prices on short-covering in the grains.
Yesterday there were rumors that further negotiations between the US and China would be underway this week. Chinese vice-premier Lui He is expected to visit the US soon, for talks with high level officials. Lui is believed to be visiting Washington in order to make preparations ahead of the G20 meeting at the end of November. Lui and Vice President Mike Pence are at the ASEAN Summit in Singapore today. World leaders are worried about the trade tension between the two world powers and thinks its bound to create a domino effect that will affect trade reactions from other developing nations.
Nevertheless, on the daily system this morning you have private exporters reporting to the USDA export sales of 276.7 TMT of new crop soybeans for delivery to unknown destinations. The cash premiums in Brazil for soybeans have gotten murdered in the last week, down over $1 to $1.70 over the CBOT versus $2.75 in September and October. This has exporters there worried that they will see a significant decline in their market share if the US and China can come to some sort of resolution to end the trade war.

We can make a leap of faith here and say that once again sales to “unknown destinations” are most likely sales to China. For the most part right now, beans originating out of Brazilian ports continue to remain more attractive to the Chinese than those originating out of the Pacific-Northwest (PNW). The window is now open to get something done on a new trade deal because it will not be very long until boats in S. America begin loading new crop beans in late January/ early February.

Delivery Reminders for Didion –
1. We are only accepting November contracted corn. December contracts will have to hold off until December.
2. We are still buying spot and Last Half November corn.
3. All loads must be scheduled prior to delivery. This allows us to manage space and keep you from waiting in long lines.
4. Plan ahead when scheduling your loads. We would recommend you call at least 1 day in advance to schedule your loads.

Have a Safe Day!

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