Last month’s World Agricultural Supply and Demand Estimates (WASDE) report helped fuel a rally that lasted from the middle of November to early December. Prices have finally started to sputter – just in time for December’s WASDE report, which comes out Thursday morning.
If that data proves to be supportive, it could help shift prices higher once more. Analysts expect the agency to trim another 30 million bushels off ending soybean stocks, which are already historically tight, at 190 million bushels.
That’s not the only thing traders have been monitoring this week. They have payed especially close attention to weather in South America, for example. A dry start to the season kept soybean prices red-hot, but recent rains have weighed heavily on them.
In the latest Midweek Markets, we also cover the latest ethanol trends and talk through the implications of managed funds holding relatively large net long positions for both corn and soybean contracts.
Listen to the latest Midweek Markets podcast for December 9, 2020: