November 9, 2018

Good Morning,

Markets are lower this morning as traders make adjustments following the USDA’s decision to go back and alter 10 years worth of Chinese balance sheets for corn, beans and wheat. In particular it was the sharp rise in China’s corn stocks by 149 MMT that weighed on prices yesterday despite the 1.7 bu. reduction to the yield estimate for US corn. The 1.7 bu/acre reduction took the US yield to 178.9 which would still be a record yield by 2.3 bu/acre!
In the last 18 years the USDA has lowered their yield estimate in the November report from the October report only 9 times. Only twice have they raised the yield from the November to January report. Of these two years (2008 & 2009) only 2009 saw a significant change.
Ultimately yesterday’s news was in the world carryout and until we lower production or increase demand the prices we are seeing now are not going to change.

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 weekend!

Garry Gard