NAPERVILLE, Ill. (Reuters) - Speculators have been flirting with record optimism in Chicago-traded soybeans for a couple of weeks, though they finally broke their bean-buying streak last week as futures hit 2-1/2-year highs. However, investors’ bullish corn run is still alive.
In the week ended Oct. 13, money managers reduced their net long in CBOT soybean futures and options to 226,444 contracts from 238,394 a week earlier, according to data from the U.S. Commodity Futures Trading Commission.
That was funds’ first net selling week in soybeans since the one ended Aug. 11, the day before the U.S. government’s August crop report. Most-active soybean futures on Friday ended 20% higher than on Aug. 11.
Funds’ recent bullish soy surge has been primarily driven by new outright longs entering the market each week. But in the week ended Oct. 13, they removed gross longs for the first time in nine weeks. They also added new shorts for the first time in seven weeks, though the reduction in longs was more prominent.
Most-active soybean futures on Oct. 9 hit $10.79-3/4 per bushel, their highest level since March 2, 2018, after the U.S. Department of Agriculture projected a much tighter domestic soybean supply than analysts expected. Traders continue to monitor the steady stream of U.S. soybean sales to China, though the active U.S. harvest has added some headwind.
Soy futures rose fractionally over the last three sessions and commodity funds were seen as light net buyers of the oilseed. Open interest in soybeans hit another all-time high through Oct. 13 of 1.32 million contracts.
Funds barely adjusted views in the soy products through Oct. 13. They increased their net long in soybean oil futures and options to 82,188 contracts from 80,994 a week earlier, and their net long in soybean meal was virtually unchanged at 77,068 futures and options contracts.
CORN, WHEAT
Money managers in June had placed record bullish bets on soybeans versus corn, but their optimism has fallen to the lowest levels since mid-March. Funds have not been bearish that spread since February, but that stint was brief.
Through Oct. 13, money managers lifted their net long in CBOT corn futures and options to 170,869 futures and options contracts from 134,466 the week prior. That was their 10th consecutive week of net buying in corn. New longs were more prominent than short covering in the latest week, the first such instance since the streak began.
Funds have not added outright short positions in corn since the week ended Aug. 4. Most-active corn futures finished at $4.02 per bushel on Friday, nearly 26% higher than on Aug. 4.
Corn was up 2.7% over the last three sessions, and funds are predicted to have boosted their net long above 200,000 contracts during that period. That is still shy of 2012’s record for the date.
In the week ended Oct. 13, money managers raised their net long in Chicago wheat futures and options to 38,590 contracts from 30,336 a week earlier, linked with a fractional rise in futures.
But wheat prices exploded more than 5% in the last three sessions on continued weather concerns in top suppliers, including No. 1 exporter Russia. Most-active futures on Friday hit $6.30-3/4 per bushel, their highest since December 2014.
Between Wednesday and Friday, commodity funds were estimated to have bought 21,500 Chicago wheat futures, which would boost their bullish views to record levels for the date.
Money managers increased their net long in Kansas City wheat futures and options to 32,197 contracts through Oct. 13 from 27,379 in the prior week. That is their most optimistic view toward hard red winter wheat since September 2018. Ongoing dryness in the Southern U.S. Plains, where that variety is grown, has supported K.C. wheat.
Minneapolis wheat futures have also strengthened, and on Friday they reached the highest point on a continuous chart since January. Through Oct. 13, funds reduced their net short in spring wheat to 1,774 futures and options contracts from 5,112 a week earlier.
That is investors’ least bearish Minneapolis view since March 2019, but optimism has been absent for more than two years.
The opinions expressed here are those of the author, a market analyst for Reuters.
Editing by Matthew Lewis
October 19, 2020 at 01:36PM
https://ift.tt/2Hd0W3B
Column: Funds ease CBOT soy bullishness but load up on corn, wheat - Reuters UK
https://ift.tt/3gguREe
Corn
No comments:
Post a Comment