Column: Funds publish file soymeal selloff however corn views do not budge

Soybeans are seen in a discipline ready to be harvested in Minooka, Illinois, September 24, 2014. REUTERS / Jim Younger / File Photograph

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NAPERVILLE, Sick., Might 22 (Reuters) – Speculators continued promoting Chicago-traded soybean meal at a sizzling tempo final week as costs dipped close to four-month lows, however they proceed carrying a hefty lengthy place in corn.

In line with the US Commodity Futures Buying and selling Fee, cash managers slashed their internet lengthy in CBOT soybean meal futures and choices to 35,923 contracts via Might 17 from 52,314 per week earlier.

That put the three- and four-week promoting totals at file ranges. Within the four-week interval ended Might 17, most-active meal futures had shed 10.4% however have been down as a lot as 14%. The contract truly rose 2.6% in the newest week.

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Cash managers offered 63,619 soybean meal futures and choices contracts within the 4 weeks ended Might 17, equal to about 12% of the anticipated US meal manufacturing in 2021-22.

CBOT oilshare, measuring soyoil’s share of worth within the soy merchandise, had reached file ranges on Might 12, and that eased final week. Soymeal futures rose 4.4% within the final three classes however soybean oil fell 3%.

Cash managers had trimmed their CBOT soybean oil internet lengthy within the week ended Might 17 by somewhat greater than 2,000 contracts, leading to 86,237 futures and choices contracts.

Most-active CBOT soybean oil has principally traded on the beforehand unprecedented 80-cent degree for a month now, settling at 80.93 cents per pound on Friday. Excessive costs have been supported by prime vegoil exporter Indonesia’s April 28 ban of palm oil exports.

Indonesia mentioned Thursday that the ban would finish Monday regardless of home cooking oil costs remaining nicely above the goal ranges prompt. learn extra Nevertheless, Jakarta mentioned on Friday it will reimpose a home gross sales requirement, successfully curbing some exports. learn extra

Benchmark Malaysian palm oil futures rallied 3% on that information on Friday, although costs have eased greater than 12% for the reason that day earlier than the ban took impact. However costs are nonetheless about 50% steeper than a yr in the past, which had featured file ranges for the date.

Managed cash internet place in CBOT soybean meal futures and choices

CORN, SOY, WHEAT

CBOT corn futures jumped over 3% within the week ended Might 17, however cash managers added simply over 1,000 contracts to their corn internet lengthy, which reached 339,711 futures and choices contracts. The lengthy has exceeded 300,000 contracts since October.

Cash managers snapped a three-week promoting streak in CBOT soybeans via Might 17, lifting their internet lengthy to 147,335 futures and choices contracts from 130,661 per week earlier. That was primarily based solely on contemporary longs and got here with a 5.4% rise in most-active futures.

Corn eased almost 3% during the last three classes as US farmers continued to make progress on their traditionally sluggish planting efforts, however soybeans jumped 1.6%. High corn exporter Argentina mentioned on Thursday it might elevate its 2021-22 corn export cap to 35 million tonnes from 30 million at present.

Chicago wheat futures shot up almost 17% within the week ended Might 17 as India banned exports over excessive home costs and a smaller crop. The contract traded as excessive as $ 12.84 per bushel, a degree reached on solely 5 different buying and selling days in historical past.

India had been set to ship a file quantity of wheat in 2022-23, at the very least 8.5 million tonnes, some 4% of worldwide exports. As of Thursday, the federal government was contemplating permitting some trapped wheat at ports, as much as 1.8 million tonnes, to ship out. learn extra

Cash managers within the week ended Might 17 boosted their internet lengthy in CBOT wheat futures and choices to 26,586 contracts, their most bullish since March 2021. That was up from 15,547 per week earlier and represented only a fraction of the shopping for that had been anticipated.

Open curiosity in Chicago wheat surged 14% within the week ended Might 17, probably the most for any week since 2006, however it’s nonetheless the lightest for the date since 2009.

Most-active CBOT wheat futures fell 8.5% within the final three classes as traders booked income. Commerce sources counsel commodity funds could have offered 37,000 futures contracts throughout that interval, which might end in a real-time internet quick.

Karen Braun is a market analyst for Reuters. Views expressed above are her personal of her.

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Enhancing by Matthew Lewis

Our Requirements: The Thomson Reuters Belief Ideas.

Opinions expressed are these of the writer. They don’t mirror the views of Reuters Information, which, beneath the Belief Ideas, is dedicated to integrity, independence, and freedom from bias.

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