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3 Big Things Today, December 12

Soybeans, Corn Little Changed Overnight; WASDE Changes Expected to Be Minor

1. Soybeans, Corn Little Changed Ahead of Monthly USDA Report

Soybeans and corn were little changed ahead of this morning’s release of the World Agricultural Supply and Demand Estimates (WASDE) Report from the USDA.

Analysts only expect minor changes to the carryout projections from the USDA since the agency doesn’t make alterations to its supply estimates in December, meaning any shifts will come from potential demand.

Fundamentally, not much has changed. Rain fell over the weekend and is expected to continue through the early part of the week, which will boost crops. In Argentina, where it’s been dry, some showers are forecast for eastern-growing areas this weekend.

Soybean futures for January delivery fell 1¢ to $9.81½ a bushel overnight on the Chicago Board of Trade. Soy meal lost $1.30 to $326.40 a short ton, and soy oil declined 0.01¢ to 33.45¢ a pound.

Corn futures for March delivery rose ¾¢ to $3.49¾ a bushel in Chicago.

Chicago wheat for March delivery rose 1¼¢ to $4.14¾ a bushel overnight, and Kansas City futures gained 2¢ to $4.14¾ a bushel.


2. Agriculture Department Likely to Make Only Minor Changes in December WASDE

The USDA likely will only make minor changes in the December WASDE Report this morning, according to analysts.

Traders and other market-watchers have said they expect the USDA to peg corn stockpiles for the 2017-2018 marketing year at 2.478 billion bushels, down slightly from last month’s forecast for 2.487 billion bushels.

The USDA doesn’t make changes to its supply estimate in December, so any changes will be in demand.

For soybeans, analysts are expecting the department to put inventories at the end of the marketing year on August 31 at 438 million bushels, up from November’s projection of 425 million bushels.

Brazil’s soybean crop will likely be seen at 108.2 million metric tons, up slightly from 108.0 million tons last month. Argentina’s output estimate likely will fall to 56.5 million tons from 57 million a month ago, according to analyst projections.

Wheat ending stockpiles will probably be pegged at 938 million bushels.

Global ending corn inventories are seen at 202.7 million tons while 2017-2018 soybean carryout is expected around 97.8 million tons. Wheat stockpiles are pegged at about 267.1 million tons.


3. Winter Storm Warning in Effect For Western Michigan, Southern Plains Still Dry

A winter storm warning is in effect for western Michigan, as counties along Lake Michigan are getting hit by lake-effect snow.

As much as 11 inches of snow are expected in some parts of the area, which also includes extreme northwestern Indiana, according to the National Weather Service. Wind gusts of up to 40 mph also are forecast.

The winter storm warning is in effect until tomorrow at 7 a.m. Travel is not recommended. For those who must travel, the agency recommends carrying supplies including water and food.

In the Southern Plains, meanwhile, it’s extremely dry. There’s an elevated risk of wildfire starting this afternoon in much of Oklahoma and parts of north Texas due to warm, windy, and dry weather, the NWS said.

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