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3 Big Things Today, Dec. 9

Grains, Soybeans Higher as Shorts Close Positions Ahead of WASDE

Soybeans and grains were higher overnight as money managers buy back contracts and close their positions ahead of today’s World Agricultural Supply and Demand Estimates report from the U.S. Department of Agriculture.

While the government isn’t expected to make any Earth-shattering changes in today’s WASDE report, speculative investors are heavily net-short and likely don’t want to get caught on the wrong side of the trade if there’s a bullish surprise.

Corn futures for March delivery gained 1 ½ cents to $3.75 a bushel on the Chicago Board of Trade.

Soybean futures for January delivery rose 4 ½ cents to $8.81 ¼ a bushel in Chicago. Soymeal for January delivery gained $1.70 to $277.10 per short ton, while soyoil was unchanged at 31.49 cents a pound.

Wheat futures for March delivery rose 3 cents to $4.84 ½ a bushel in Chicago. Kansas City wheat gained 2 ½ cents to $4.75 a bushel.

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WASDE Expected to Be Quiet Today

The USDA likely will increase its outlook for domestic stockpiles in today’s WASDE, but little else is expected from a quiet report due out at noon in Washington.

Corn carryout is forecast by various news services from 1.768 billion to 1.769 billion bushels, up from last month’s outlook for 1.76 billion bushels.

Soybean stockpiles, which in November were projected at 465 million bushels, have been forecast from 462 million to 466 million, so it’s really anybody’s guess as to which way that number goes.

Wheat estimates were pretty much on par, between 917 million and 918 million bushels, well above the November outlook for 911 million bushels.

Few changes are forecast for global stockpiles as well, but with any USDA report, it could hold surprises: This is leading money managers to liquidate short positions and buy back contracts.  

Comment on the USDA WASDE report on agriculture.com’s Marketing Talk at http://community.agriculture.com/t5/Marketing/bd-p/marketing.

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PNW Weather System Swoops East Into Northern Plains

A weather front that’s been beating up on the Pacific Northwest is slowly making its way east, bringing high wind and precipitation to some parts of the northern Plains.

High wind advisories have been issued by the National Weather Service for parts of the Dakotas, Montana, and Idaho.

Rain and snow is expected in parts of the Cascade Mountains and central Rockies, which bear watching as they could move east into the central and southern Plains.

The weather in Brazil may turn drier in central areas in the next six to 10 days, according to Donald Keeney, an agricultural meteorologist with MDA Information Services. No changes are expected for Argentina, where showers have favored developing crops.  

Get involved in the discussion in Marketing Talk at 
http://community.agriculture.com/t5/Marketing/bd-p/marketing.

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