Speculators Become Bullish On Soybeans For The First Time In 6 Months
In the Commitment of Traders report from the CFTC, managed money or speculators were reported to have turned net long on soybeans. They now maintain a net long position of 13,166 contracts, adding 13,849 contracts in the week ending on Dec 18. This also marks the first net long position in beans since June 12.For corn, money managers also added to their bullish stance. They added 34,693 to their net long position of 124,427 contracts, the largest net long position held by speculators since May 29. Money managers also increased their net long position in KC HRW wheat by 3,166 to 3,908 net long. They also reduced their net short position in Chicago SRW wheat by 18,843 to 3,612 contracts, making it the smallest net short position since September.
Earlier Than Expected Winter Weather This Year In The Midwest May Reduce Corn Acres In The Spring
With early cold and snow in large parts of the Corn Belt, many farmers were unable to complete necessary fieldwork in the fall in order to prepare the ground for corn-on-corn plantings next spring. Across the Corn Belt, nearly 11 million acres of corn and soybeans were still standing unharvested at the end of November. Heavy rains, cold weather, and snow kept farmers out of the field from the Ohio River Valley in Kentucky all the way through the Northern Plains. The USDA estimates 93 million acres to be planted for corn in the spring and soybeans will see 82.5 million acres, a 7.5% drop. With fall tillage not being done in many areas, it may be possible that marginal acres intended to be planted as corn may switch to soybeans.
Winter Storms Are In The Forecast For The West In The Middle Of This Week
In spite of warmer weather and clearer skies as of late, the National Weather Service anticipates a winter storm to begin forming in South Dakota and Nebraska on Wednesday. On Friday, South Dakota is forecast to see some wintry mix that will turn into snow and also brace for high winds. Parts of W Minnesota are also forecast to see some rain on Thursday. Further to the south, N Missouri and E Iowa are also expecting some snow, with up to an inch forecast. Roadways that have not been treated may become hazardous for travel.
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