Headlines:
- Hedge funds turn bearish on cocoa for first time in years….
Managed-money funds are betting against the cocoa market, for the first time in four-and-a-half years. But hedge funds turned bullish on lean hog markets at the fastest pace on record, as prices soar, according to weekly commitment of traders’ data from the US Commodity Futures Trading Commission. As of last Tuesday, managed-money short positions in New York cocoa futures, which stand to benefit if prices fall, now outnumber long positions, for the first time since June 2012. Hedge funds have been piling out of long positions in cocoa as production in West Africa exceeds expectations, and markets tumble. New York cocoa futures are on track to finish 2016 some 30% lower. And funds are turning bearish across other New York traded softs as well, with the combined managed-money net long for cocoa, arabica coffee, cotton, and raw sugar at its lowest level since May. - CME grain futures will close early on Friday, December 23rd, at 1:05pm ET; markets will reopen on Monday night, December 26th at 8:00pm ET.
Summary:
Overnight strength did not last long today. Corn and Soybean futures suffered after beneficial rain hot the Argentine crop regions. One of the key factors that would be helpful to US Grain futures is disruption to the South American crops. The record production levels continue to hamper the market’s ability to sustain rallies for the coming weeks are going to focus developments in South America.
Corn lost 2.50 cents today. Soybean dropped double digits today but managed to hold support at least for today. Bean gave up 13.50 cents. Wheat gapped higher in the overnight session then sold off for the early part of the day. After the opening hour sell off it traded sides then ticked slightly higher during the closing minutes. It ended the day with a loss of 2.75 cents.
Overall trading volume was lighter as would be expected during this time of the year. Additionally light trading volatility it consistent heading into this holiday season.
After much wrangling the Electoral College looks to certify its votes today and confirm President elect Donald J. Trump as the 45th President of the United States.
