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3 Big Things Today, December 4

Soybeans Higher in Overnight Trading; Speculators More Positive on Corn, Beans Last Week.

1. Soybeans Higher Overnight on Brazil Dry Weather Concerns

Soybeans were higher in overnight trading amid continued weather concerns in southern Brazil and Argentina.

Dry weather in the South American countries has led to worries that production would be harmed, analysts said. The most recent six- to 15-day forecasts are calling for continued dry weather in the southern half of Brazil’s corn- and soybean-growing areas.

Some showers are expected to expand in the center south and center west of the country, and in northern states, but not the south. Rainfall is also expected to be limited in most of Argentina’s growing areas.

Soybean futures for January delivery gained 8¾¢ to $10.03 a bushel overnight on the Chicago Board of Trade. Soy meal rose $4.10 to $334.30 a short ton, and soy oil added 0.09¢ to 33.78¢ a pound.

Corn futures for March delivery rose ¼¢ to $3.59 a bushel in Chicago.

Chicago wheat for March delivery added 2¼¢ to $4.40¾ a bushel overnight, and Kansas City futures gained 1¼¢ to $4.38¾ a bushel.

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2. Money Managers More Positive on Soybean, Corn Futures Contracts Last Week

Money managers were more positive on soybean and corn prices last week, according to data from the Commodity Futures Trading Commission.

Speculative investors raised their net-long positions in soybeans to 30,045 contracts in the seven days that ended on November 28, up from 20,314 a week earlier, the CFTC said in a report.

In corn, meanwhile, investors lowered their net-short positions, or bets on lower prices, to 194,020 contracts last week from 212,279 contracts a week earlier, the agency said.

Investors have been more positive on soybeans and corn since the end of the harvest. Concern about dry weather in South America is giving prices a bit of a boost recently.

Speculators were more bearish on wheat, however, raising the number of net longs in soft red winter wheat to 126,466 contracts. That’s up from 119,046 contracts a week earlier. Investors in hard red winter were net short by 24,440 contract vs. 20,848 a week earlier, according to the CFTC.

The weekly Commitment of Traders Report from the Commodity Futures Trading Commission shows trader positions in futures markets.

The report provides positions held by commercial traders, or those using futures to hedge their physical assets; noncommercial traders, or money managers (also called large speculators); and nonreportables, or small speculators.

A net-long position indicates more traders are betting on higher prices, while a net-short position means more are betting futures will decline.

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3. Snow Storms Expected Today as Winter Weather Advisories, Warnings Issued

The weather maps are lit up like a Christmas tree this morning with several winter weather-related warnings in effect in the Northern Plains.

A winter weather advisory is in effect for pretty much all of the Dakotas and parts of northern Nebraska and the northern half of Minnesota, according to the National Weather Service.

A blizzard warning is in effect for several counties in northeastern South Dakota, all of eastern North Dakota, and much of western Minnesota.

As much as 4 inches of snow are expected in the area with precipitation falling throughout the day. Severe winter weather conditions are expected to accompany the snowfall, which may result in a whiteout situation that makes travel dangerous, the NWS said.  

Farther south, a so-called red-flag warning is in effect in parts of central Kansas from about Lincoln to Wichita, indicating extremely dry conditions and gusty winds, according to the agency.

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