Column: Funds submit report 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, In poor health., 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 response to 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 via Could 17 from 52,314 every week earlier.

That put the three- and four-week promoting totals at report ranges. Within the four-week interval ended Could 17, most-active meal futures had shed 10.4% however had been down as a lot as 14%. The contract really rose 2.6% in the latest 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 report 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 a bit 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 degree 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 stated Thursday that the ban would finish Monday regardless of home cooking oil costs remaining nicely above the goal ranges steered. learn extra Nonetheless, Jakarta stated on Friday it might 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 12 months in the past, which had featured report ranges for the date.

Managed cash web place in CBOT soybean meal futures and choices

CORN, SOY, WHEAT

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 via Could 17, lifting their web lengthy to 147,335 futures and choices contracts from 130,661 every week earlier. That was primarily based totally on contemporary longs and got here with a 5.4% rise in most-active futures.

Corn eased practically 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 stated on Thursday it might increase its 2021-22 corn export cap to 35 million tonnes from 30 million at the moment.

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 degree reached on solely 5 different buying and selling days in historical past.

India had been set to ship a report quantity of wheat in 2022-23, no less than 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 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 buyers booked earnings. Commerce sources counsel commodity funds could have bought 37,000 futures contracts throughout that interval, which might lead to 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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Enhancing by Matthew Lewis

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

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