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Veteran Contributor
Posts: 534
Registered: ‎09-09-2014
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Floor Talk November 6

Corn and wheat were higher overnight on short-covering ahead of Thursday's WASDE while soybeans were slightly lower to unchanged on more favorable South American weather. Corn was up 2 cents, wheat was up 1-2 cents and soybeans were down 0-1 cent overnight. Money managers increased bets against higher corn prices while decreasing net-short positions in soybeans last week, according to the CFTC. In weather news, South Dakota and Nebraska may see some light snow today while flooding is forecast in parts of Indiana after weekend rainfall, the National Weather Service said. Get all the details in today's 3 Big Things at http://www.agriculture.com/news/three-big-things/3-big-things-today-november-6.

 

Brent Crude Oil = up 0.8%

West Texas Intermediate = up 0.6%

Dollar = up 0.1%.

Wall Street = U.S. stock futures mixed in pre-market trading.

World Markets = Global stocks lower overnight.

Senior Advisor
Posts: 1,061
Registered: ‎05-20-2010
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Re: Floor Talk November 6

[ Edited ]

Just to clarify Tony's (I think but can't tell) inaccurate COT data report.

 

Soybeans, Spec funds decreased their net LONG position by 8,633 contracts (decreased longs by 3734, increased shorts by 4899)

   Now net long only 41,000 contracts.

 

Corn, Spec funds vastly increased their net SHORT position by 28,368 contracts (longs down 13077, shorts up 15291)

  This is actually only part of the story, commercials who actually use the stuff bought all 28,000 or so the specs sold. Specs are short a bit over 1 BILLION bushels, yep, a round BIL.

 

BUT THE ACTUAL BIG STORY:  (this is so obvious that it becomes impossible to see I guess)

WHEAT. spec funds INCREASED their net SHORT position by 26,910 contracts (longs down 3119, shorts up 23791)

   This makes their net short position over 550,000,000 bushels (yep well over 1/2 a BILLION)

   These are bushels they don't have but have been pre-sold, thus bringing supply forward, and artificially suppressing prices.

THIS IS BULLISH....oops sorry...it is bullish (no caps as that would be irrationally exuberant and not politically correct)

 

So, now you actually have a correct news story...

 

 

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Senior Advisor
Posts: 1,061
Registered: ‎05-20-2010

Re: Floor Talk November 6

[ Edited ]

Well, I see Tony did not like someone writing a news story with accurate information and thus deleted it.

A sign that what I said really did mean something and have value.

Well Done Tony ole boy.

Ken

Senior Advisor
Posts: 1,061
Registered: ‎05-20-2010
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Re: Floor Talk November 6

I was going to paste it in again, but suc farming site won't let me...so

just the summary, despite Tony's report above,

The COT data was very bullish for corn and wheat (specs sold big and are very large short) and neutral for beans (specs just exited a small bit of their long).

Honored Advisor
Posts: 7,602
Registered: ‎07-18-2011
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Re: Floor Talk November 6

Would like to have read it the day before a report.....