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3 Big Things Today, June 10

Soybeans, Grains Lower Overnight; Money Managers Turn Bullish on Corn Futures.

1. Soybeans, Corn Fall on Dry Midwest Weather

Soybeans and corn declined overnight on expectations that growers will get their crops planted this week as dry weather finally moves into the Midwest.

Little rain is expected in much of the Corn Belt this week with the first chance of thunderstorms on Tuesday night or Wednesday morning. Storms in Iowa and Illinois, the biggest producers of both corn and soybeans, will be isolated, the National Weather Service said.

Producers and traders likely will keep an eye on weather reports throughout the week.

The corn crop was about two thirds planted, while less than 40% of soybeans were in the ground as of June 2, according to the USDA, which will update its Weekly Crop Progress Report this morning.

Analysts are expecting corn seeding to be 80% to 85% finished as of yesterday, while soybean planting is forecast at 55% to 57% complete, researcher Allendale said in a note this morning.

Soybeans for May delivery lost 5¼¢ to $8.51 a bushel overnight on the Chicago Board of Trade. Soy meal dropped $2.10 to $310.20 a short ton, while soy oil declined 0.10¢ to 27.28¢ a pound.

Corn futures for May delivery fell 3¾¢ to $4.12 a bushel overnight.

Wheat for May delivery lost 7½¢ to $4.97 a bushel in Chicago, while Kansas City wheat fell 5¢ to $4.44 a bushel.

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2. Investors Turn Bullish on Corn Futures, Hold Net-Long Positions First Time Since January

Money managers turned bullish on corn futures in the seven days that ended on June 4, increasing their holdings to a net-long position of 95,262 contracts, according to the Commodity Futures Trading Commission.

That’s the first time investors have held a net-long positions since the seven days that ended on January 22, data from the CFTC show.

Speculators also reduced their net-short positions, or bets on lower prices, in soybeans last week to 90,820 futures contracts from 128,137 contracts the previous week. That’s the smallest such position since April 9.

Fund managers and other large speculative investors have become more bullish on corn and soybeans in recent months as wet weather continues to delay planting.

Only 67% of the U.S. corn crop was planted as of June 2, well below the average of 96% for this time of year, and 39% of soybeans were in the ground, which compares with the average of 79%, according to the USDA.

In wheat, investors reduced their net-short position in hard red winter futures to 25,160 contracts, down from 40,374 contracts the previous week and the smallest such position since February 5, the CFTC said.

Money managers reduced their bearish bets on soft red winter wheat to 12,080 futures contracts, down from 23,206 contracts the prior week and also the smallest net-short position since February 5.

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.

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3. Farmers Get Break From The Rain as Storm Chances Low For Most of This Week

Producers may actually get a break from the rain for a couple more days in the Midwest as storms aren’t forecast until Tuesday or Wednesday in the region.

It will be dry throughout most of the Corn Belt today and most of tomorrow afternoon before the potential for a storm rises again.

In parts of Iowa and northern Illinois, there’s only a slight chance for an isolated thunderstorm on Tuesday night, according to the National Weather Service. Severe weather is not expected.

The next chance for a storm isn’t until Friday, the NWS said in a report early this morning.

Farther south, there’s a possibility of thunderstorms in northeastern Oklahoma and northwestern Arkansas starting Tuesday night, which could bring hail or strong winds, the agency said.

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