Corn is up 6 and soybeans are up 11 to open the day after traders got acreage estimates from the Ag outlook forum. Corn planted acres for this coming year were estimated at 92 million acres which is up 3.3% from last year’s 89.1 million acres. Soybean acres are estimated at 85.0 million acres which is down 4.7% from last year’s 89.2 million acres. While corn acres are up 2.9 million acres, they are below what traders have been expecting for this coming year. While todays data is giving live to the markets, it is important to keep in mind that these estimates do not include farmer surveys like the March 29th report will. Optimism and rumors that China is proposing to buy $30 billion a year of US agriculture products as a possible trade deal between the two countries. The offer to buy the extra farm products would be part of the memorandum of understanding (MOU) under discussion by US and Chinese negotiators in Washington and would be on top of pre-trade war levels and continue for the period covered by the memorandum. The 6 MOU’s include general agreements on: 1. Forced Technology & Cyber Theft, 2. IP Protection/Rights, 3. Services, 4. Currency, 5. Non-tariff barriers to trade and 6. Agriculture. Producer selling across the Midwest has been steady for the last month despite stagnant prices on the CBOT. Some areas of the country are seeing basis levels narrow as weather has hampered delivery of grain. Other areas of the country are seeing basis levels widen or bids totally removed as end users are bought up. My projection is that we will see more of the latter in our area as end users continue to get bought up and on farm/commercial stocks remain high. I would advise producers to make cash sales or at least lock in basis on any old crop that remains uncommitted.
RECEIVING HOURS Refer to Grain Receiving Hours in Tab to Left
Didion is Hiring!
If you know someone that is looking for employment or a change let us know. If we hire your referral you could get up to $1000! We have several openings within our company. For a list of open positions or to apply visit: www.didionmilling.com.
Fall 2019 Average Price Corn Contract
Didion Inc. is offering producers an opportunity to establish a price for their 2019 corn crop through an Average Price Contract. The customer commits to a certain amount of bushels to be priced in equal quantities at a specified weekly interval (every Thursday at the close of business) over a predetermined time frame. (19 weeks from February 21, 2019 through June 27, 2019). Historically, the best prices for new crop corn are obtained between January 1st and June 30th. Contract Details
All forward cash purchase contract terms and conditions apply.
Contract minimum of 1,000 bushels required per contract.
One forward cash contract will be issued at the end of the 19 week averaging period that will need to be signed and returned.
Program available only on new crop corn for this year.
Pricing will be every Thursday at Didions closing posted price.
Signup must be completed by the close of business on February 20, 2019.
Reduces the frustration and stress from marketing grain.
All emotion is taken out of the marketing decision.
Producer receives average forward cash price over a period of time when prices are typically above average.
Both basis and futures price will be established each week.
No margin calls or margin requirements.
Simple and understandable.
You may not capture all of the gains during a volatile market.
Average cash price may not be profitable or satisfactory.
Average time period may miss a summer weather market rally.
2018 December Corn futures weekly movement Example using the 2018 December corn futures: On February 1, 2018 you decided that you wanted to diversify your marketing plans for new crop and enter into an Average Price Corn Contract with Didion for 5,000 bushels of corn for October/November 2018 delivery. We would have priced equal quantities at Didions closing bid on each of the 19 Thursdays during the specified time period. At the end of the 19 weeks you would have received a contract for 5,000 bushels priced at $3.73 which was the average price paid by Didion during this time.
Average contract price for corn sold during October and November 2018 = $3.36 Average price for all contracted corn sold for delivery in Oct/Nov 2018 = $3.59
ACH - Payment Form
If you are interested in ACH, please completely fill out the attached form and return it to Didion. Some financial institutions charge for this service.(You will have to check with yours to see if there is a fee) If you have a lien on your grain, we will not be able to pay you via ACH. Click Here to view form.