After yesterday’s fund selling with month end profit taking the markets are steady this morning. Markets are neutral to start the day/month with corn unchanged and soybeans up 3. On Monday, Managed funds were net sellers of 13,000 contracts of Wheat; 27,000 Corn; 17,000 Soybeans. Funds are now net long 8,000 contracts of Wheat; long 257,000 Corn; net long 214,000 Soybeans.
November was a good month in the grain markets with corn closing $.23 cents higher and soybeans closing $1.12 higher. Rallies like this during harvest timeframes are rare but very welcome, especially for producers that were short on sales and space.
There is rain forecast for North and Central Brazil that starts on Sunday. The amounts are .75-2 inches, which is still below normal for this time of year. The models have been over-estimating rain totals for a month, showing heavy amounts coming in, with very little actually hitting the ground. Mato Grosso rarely sees dry weather at this time of year and usually will receive 2-3 inches a week. They may be moving back to a more normal forecast with the 10 day model run and the more into the 9th of December.
I look for the markets to trend sideways to lower during the month of December with South American weather, COVID-19 and Chinese cancelations in the drivers seat.
Have a Safe Day!