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3 Big Things Today, December 6

Soybeans, Corn Higher Overnight; Australia Officially Joins U.S. in Declaring La Niña.

1. Soybeans, Corn Higher Overnight on Ongoing Concern About Argentina

Soybeans and corn were higher in overnight trading amid ongoing worries about crops in Argentina.

Dry weather is of concern in the South American country due to a La Niña weather system that’s being watched closely by growers, traders, and analysts.

The heat is limited in the next week for Argentina, but it’s expected to get into the 90s by the end of the 10-day period in most corn- and soybean-growing areas, Commodity Weather Group said.

The heat will moderate in the 11- to 15-day period, but southern Santa Fe, Entre Rios, and northern Buenos Aires aren’t expected to get rainfall, the forecaster said.

Soybean futures for January delivery rose 3¾¢ to $10.12¼ a bushel overnight on the Chicago Board of Trade. Soy meal gained $3.60 to $346.90 a short ton, and soy oil fell 0.09¢ to 33.41¢ a pound.

Corn futures for March delivery added 2¢ to $3.55¾ a bushel in Chicago.

Chicago wheat for March delivery fell ¼¢ to $4.32½ a bushel overnight, and Kansas City futures were unchanged at $4.31½ a bushel.

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2. Australian Meteorologists Call La Niña Official, Biggest Impact Expected to Be in South America

U.S. meteorologists that declared a La Niña global weather phenomenon official a couple months ago were joined by officials at Australia’s Bureau of Meteorology who said the weather pattern has established itself in the Pacific Ocean.

The forecasters noted, however, that this weather event will be brief and last only through spring in the Northern Hemisphere.

During a La Niña, the tropical Pacific Ocean cools, which can lead to droughts in South America and increased rainfall in Australia.

Commerzbank said in a note overnight that soybean and corn prices are seeing gains from the dry weather in Argentina and that only half of the expected acreage has been planted and growers fear that yields will decline.

That, in turn, has increased concerns among market watchers about reduced production out of the South American country and push overseas buyers including China, the biggest importer of soybeans in the world, to the U.S. for supplies.

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3. Dry Plains Brings Risks of Fire, Wintry Weather Expected in Northern Plains, Indiana

It’s going to be windy and dry in the Southern Plains, which means more wildfire risks in the region.

Strong northwest winds will develop in parts of western Kansas today, and humidity is pegged below 30%, boosting the risk of fires, according to the National Weather Service. The danger is expected to last through Tuesday, the agency said.

Farther north, a winter weather advisory is in effect for several counties in parts of western South Dakota and extreme eastern Montana and Wyoming.

Light snow and gusty winds are expected with totals ranging from 3 to 6 inches. Some very localized amounts of 8 inches are expected by tonight, the NWS said.

In parts of Indiana, it’s going to be cold, as temperatures are expected to drop into the teens and possibly upper single digits tonight.

“A modified arctic front will move in from the north late today and tonight,” the NWS said in an early Wednesday report. “Snow showers will be possible Friday night and Saturday, as an upper wave moves through the Ohio Valley.”

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