Funds Get Bullish on the Soybean Market
DES MOINES, Iowa -- Outside investors are getting more bullish on the soybean market, while remaining solidly bearish on corn prices, according to the Commodity Futures Trading Commission (CFTC).
On Monday, the CFTC’s Commitments of Traders Report (COT) shows that the funds and producers hold net short positions in both corn and soybean markets. The funds are nearly flat the soybean market, while adding a large amount of long positions this past week.
For corn, the managed money investors are net short 82,456 contracts, while adding 2,450 long positions a week ago.
Producers remain net short the market by 227,740 contracts, though cutting short positions last week by 4,145 contracts.
In the soybean market, the managed money investors are net short the market by only 3,159 contracts. Since last week’s report, the outside investors added a total of 29,997 long contracts.
The producers are net short soybean contracts by 131,731. Since the previous COT report, producers cut short positions by 20,448.
Managed money investors hold a net long position in this market by 20,138 contracts, following an addition of 21,052 long contracts last week.
The producer investors are net short wheat by 140,523 contracts. This group cut short positions by 14,407 vs. a week ago.
The COT Report indicates that outside investors are net long the hog and cattle markets. Meanwhile, producers are running a net short position in both.
The Weekly Commitment of Traders Report from the Commodity Futures Trading Commission shows trader positions in futures markets.
The report provides positions held by commercial traders, or those using futures to hedge their physical assets; noncommercial traders, or money managers (also called large speculators); and nonreportables, or small speculators.
A net-long position indicates more traders are betting on higher prices, while a net-short position means more are betting futures will decline.
Cash Basis Levels
In a separate set of data, cash corn bids, reported Monday, show favorable selling opportunities.
However, for three Midwestern states, the soybean basis levels are getting away from farmers.
Barchart’s cmdtyNewswires reported that for March 2020 delivery, Iowa’s statewide average corn cash bid is $3.67 per bushel, with a basis running 20¢ under the Chicago futures market price.
Minnesota’s average corn cash bid is averaging $3.52 per bushel, equaling 34¢ under Chicago futures.
Indiana farmers are enjoying an average corn basis of $4.03 per bushel, running 16¢ above the board.
Soybean Cash Basis
In Nebraska, a statewide average cash soybean bid is $8.23 per bushel, for March 2020 delivery. That basis is $1.20 below the Chicago Mercantile Exchange (CME) Group. For May delivery, the soybean basis average is $8.62, 95¢ under the Board.
On Monday, North Dakota’s soybean statewide basis price average is $8.12 per bushel, $1.31 under the CME Group’s futures price.
In Minnesota, the statewide average soybean basis price of $8.65 per bushel is 78¢ under the CME Group.