We kicked off the day with NY Empire State Manufacturing Index at 7:30 A.M., S&P Global Composite PMI Flash, S&P Global Manufacturing Index PMI Flash, and S&P Global Services PMI Flash at 8:45 A.M., Wxport Inspections at 10:00 A.M., 3-Month & 6-Month Bill Auction at 10:30 A.M., and NOPA Crush at 11:00 A.M.
Managed funds were long a net 41,000 contracts of corn, soybeans, and Chicago wheat combined on Tuesday. This compares to a net short position of 53,000 contracts the previous week, and net buying/short covering was noted at (+77,000 contracts) and even soybeans (+14,000). Funds are still net short soybeans and wheat, but expanded net length in corn to a sizable 165,000 contracts vs. 88,000 the previous week. USDA’s bullish December WASDE is noted, but there will be no fundamental reason to hold large net length if South American weather stays favorable for another 45 days.
Weather Pattern DiscussionMajor Boost in Soil Moisture Forecast in Delta/Eastern Midwest; Climate Guidance Trending Warmer:The Central US has added precipitation – mostly – rain to the Delta, mid-South, and eastern Midwest Sat-Mon. Moisture totals of 1-2” will favor AR, MO, TN, KY, IL, and OH – further easing drought/abnormal dryness there. Light snow favors the Dakota’s MN, and WI over the next 10 days.Cold temps exit the Central US beginning this week, and a pattern of broad warmth will be established in the final days of December – and possibly into the middle part of winter. Max temps next week will range from the mid-30’s to low 50’s across the primary Corn Belt, The EU & GFS forecasts are broadly in line with major winter storms lacking now and mid-January. Snows are confined to areas along the Canadian border.More By This Author:Revisions Won’t Change The Game. The Corn & Ethanol Report
Upswing on Small Business’s Optimism & WASDE Update. The Corn & Ethanol Report
WASDE & Weather. The Corn & Ethanol Report
