USDA releases WASDE report forecasting supply and demand of crops for the year ending in April.
Stocks/Use ratio forecasts the number of years or days that soybean supply will be sufficient under the current demand pattern. The stocks here refer to the projected ending stocks at the end of upcoming April.
When the ratio goes down, wheat price rises.
*USDA releases WASDE report between the 9th to the 12th every month.
*The report includes revisions for the last two years.
Long positions by managed funds
/ short positions by managed funds
= Ratio of long to short
The long-to-short ratio represents market sentiment to some degree. When the ratio gets bigger, institutional investors are going long on wheat futures. When the ratio reaches an all-time high or low, market sentiment can be overly optimistic or pessimistic, which could bring about a reversal in price.
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