BULLISH BETS ARE DRASTICALLY CUT BY INVESTORS AS GRAINS SOAR AND SOYBEANS FALL OVERNIGHT.

 

As traders continue to process Friday's World Agricultural Supply and Demand Estimates (WASDE) data, soybean prices fell during overnight trading.

In the study, the U.S. Department of Agriculture stated that it now anticipates a global soybean production of 391.2 million metric tonnes, up from an earlier forecast of 390.5 million tonnes.

The ministry reported that inventories are now expected to be 102.7 million metric tonnes, up from the previous estimate of 102.2 million tonnes.

According to the USDA's assessment, Brazil's production is predicted to reach 152 million metric tonnes, up from 127 million tonnes a year before, and its ending stockpiles are estimated to be 31.7 million tonnes, up from 23.8 million tonnes the previous year.

Brazil was expected to export 89.5 million tonnes, up from 79.1 million tonnes the previous year.

While everything was going on, wheat prices spiked overnight after the USDA revised its projection for world production and stocks from the previous month.

The USDA reported that the projected global wheat yield is now 780.6 million metric tonnes, down from the previous forecast of 782.7 million tonnes. At 267.3 million tonnes, inventories are expected to be lower than the 267.8 million tonnes predicted in November.

Following the USDA's announcement that it now anticipates world-ending inventories at 298.4 million metric tonnes, down from the November projection for 300.8 million tonnes, corn prices also increased.

According to the USDA's estimate, if accomplished, that would be less than the 307.1 million metric tonnes collected worldwide in 2017.

On the Chicago Board of Trade, soybean futures for January delivery fell 19 1/2 to $14.64 1/4 a bushel overnight. Soy oil fell 0.58 cents to 59.43 cents per pound, while some lost $7.70 to $463.90 per short tonne.

Kansas City wheat increased by 11 cents to $8.44 a bushel, while wheat futures for March delivery increased by 14 cents to $7.48 1/4.

A bushel of corn for March delivery increased by 5 to $6.49.

SPECULATORS PLACE BULLISH BETS EVERYWHERE.

In the week that concluded on December 6, investors became more positive on corn, bean, and wheat futures, according to data from the Commodity Futures Trading Commission.

Speculators' net-long position, or bets on rising prices, decreased from 193,989 contracts the week before to 119,189 contracts for maize futures last week.

Since August 2, that position has been the smallest.

According to a report from the CFTC, money managers held a net total of 100,755 contracts for soybean futures, down from 103,196 contracts the previous week.

9,636 hard-red wheat futures contracts were held last week by hedge funds and other significant investors.

The agency said that this represents the lowest such position for hard-red futures since August 23. It was 16,852 contracts the prior week.

Last week, investors increased their net-short positions—bets on lower prices—from 53,058 contracts to 63,098 contracts as their bearishness toward soft-red winter wheat increased.

According to the CFTC, that is the biggest negative position for soft-red winter contracts since May 14, 2019.

The Commodity Futures Trading Commission's weekly Commitment of Traders report discloses trading positions in futures markets.

The holdings held by commercial traders—those who use futures to protect their physical assets—noncommercial traders—money managers (sometimes known as large speculators”—and non reportable—small speculators—are also disclosed in the report.

A net-long position shows that more traders are placing bets on rising prices, whereas a net-short position shows that more traders are placing bets on futures prices falling.

PARTS OF THE CENTRAL PLAINS WILL SUFFER FROM WINTER WEATHER

According to the National Weather Service, winter weather is battering the central Plains as blizzards dump heavy snow and freezing rain on the area.

Blizzard warnings will go into place beginning at midnight and last until Thursday morning in western South Dakota and western Nebraska, according to a bulletin released by the NWS early this morning.

According to the weather service, rain and a wintry mix will give way to 5 to 12 inches of snow, up to two-tenths of an inch of ice, and gusts that could gust as high as 55 miles per hour.

Western Nebraska will see "extremely challenging to impossible travel conditions," according to the NWS. Whiteout conditions will result from widespread blowing snow, which will drastically restrict visibility. Strong

According to the organization, an ice storm warning has been issued for a large portion of eastern South Dakota beginning at noon today and extending until tomorrow evening. As ice accumulations of up to four-tenths of an inch are predicted, power outages and tree damage are likely to result.

The region will also be under a winter storm warning beginning at 6 p.m. tomorrow and lasting until Thursday morning, according to the agency.

Snowfall of up to 8 inches and wind gusts of 45 mph are predicted.