The corn market is firm and trading near mid-range after testing the late November highs around 442. Strong domestic and export demand supports the market, while promising South American crop prospects limit gains.
Tomorrow’s USDA WASDE report is expected to show US ending stocks dropping to 1.902 bb from 1.938 bb, with little change in South American production. Brazil’s corn crop is estimated at 127.1 mmt and Argentina’s at 50.7 mmt.
Friday’s Commitment of Trader’s report showed Managed funds selling a net 9,222 corn futures contracts as of December 3, lowering their net long to 88,220 contracts.
Soybeans are trading near session lows after a 10-cent gain in January futures, pressured by lower soybean oil and meal prices that are well off session highs.
Strength in soybean meal may stem from drier conditions in Argentina, the world’s largest meal exporter. While rain is forecast, coverage is expected to be spotty rather than widespread.
Trade may remain choppy ahead of tomorrow’s USDA report, with few changes expected. The trade projects US soybean ending stocks at 467 mb, Brazil’s production at 169.4 mmt, and Argentina’s at 51.4 mmt.
Friday’s COT report showed managed funds covering 9,255 soybean contracts as of December 3, reducing their net short position to 72,217 contracts.
All three wheat classes remain higher at midday as buyers follow through on strength from last week’s lows.
Trade expects minimal changes in tomorrow’s USDA WASDE report, with US ending stocks projected at 814 mb and global stocks at 257.7 mmt.
Friday’s Commitment of Traders report showed managed funds sold 10,268 Chicago wheat contracts, increasing their net short to 69,386, and 7,769 KC wheat contracts, bringing that net short to 38,430.
Grain Market Insider is provided by Stewart-Peterson Inc., a publishing company.
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