Column: Funds put up 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 Picture

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NAPERVILLE, Unwell., Could 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 web lengthy in CBOT soybean meal futures and choices to 35,923 contracts by way of Could 17 from 52,314 every week earlier.

That put the three- and four-week promoting totals at file ranges. Within the four-week interval ended Could 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 bought 63,619 soybean meal futures and choices contracts within the 4 weeks ended Could 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 Could 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 web lengthy within the week ended Could 17 by slightly greater than 2,000 contracts, leading to 86,237 futures and choices contracts.

Most-active CBOT soybean oil has largely traded on the beforehand unprecedented 80-cent stage for a month now, settling at 80.93 cents per pound on Friday. Excessive costs have been supported by high 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 instructed. 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% because the 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 web place in CBOT soybean meal futures and choices


CBOT corn futures jumped over 3% within the week ended Could 17, however cash managers added simply over 1,000 contracts to their corn web 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 by way of Could 17, lifting their web lengthy to 147,335 futures and choices contracts from 130,661 every week earlier. That was based mostly completely on recent longs and got here with a 5.4% rise in most-active futures.

Corn eased practically 3% over the past three classes as US farmers continued to make progress on their traditionally gradual planting efforts, however soybeans jumped 1.6%. Prime corn exporter Argentina mentioned on Thursday it could increase its 2021-22 corn export cap to 35 million tonnes from 30 million presently.

Chicago wheat futures shot up practically 17% within the week ended Could 17 as India banned exports over excessive home costs and a smaller crop. The contract traded as excessive as $ 12.84 per bushel, a stage 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 world 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 Could 17 boosted their web lengthy in CBOT wheat futures and choices to 26,586 contracts, their most bullish since March 2021. That was up from 15,547 every 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 Could 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 bought 37,000 futures contracts throughout that interval, which might end in a real-time web brief.

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

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