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3 Big Things Today, August 8

Soybeans Rise as Purchases Continue; Money Managers Cut Net-Long Bean Positions.

1. Soybean Futures Higher Overnight as Export Sales Continue

Soybean futures rose overnight on continued signs of strong demand for U.S. supplies.  

Exporters announced another sale of 498,000 metric tons of new-crop soybeans to China on Friday, pushing the total of recent sales to more than 3 million tons, according to the Department of Agriculture. Importers have been locking in supplies due to low prices and a weakened dollar that improves their purchasing power.

The weekly Export Sales Report due out on Thursday should reflect many of the recent sales. Grain futures also rose along with beans.

Soybean futures for November delivery rose 9¾¢ to $9.84¼ a bushel on the Chicago Board of Trade. Soy meal futures for December delivery added $3.60  to $335 a short ton, and soy oil gained 0.21¢ to 31.22¢ a pound.

Corn futures for December delivery rose ¾¢ to $3.35 a bushel overnight.

Wheat futures for September delivery rose 5¼¢ to $4.21¼ a bushel in Chicago, while Kansas City wheat added 1¾¢ to $4.13½ a bushel.

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2. Money Managers Slash Bets on Higher Soybean Prices Despite Demand

Money managers cut their bets on higher soybean prices even as importers have purchased millions of tons from U.S. inventories in the past week.

Speculative investors lowered their net-long positions, or bets on higher prices, in soybeans to 97,021 contracts from 109,696 a week earlier, the lowest such position since April 15, the Commodity Futures Trading Commission said in a report on Friday.

Investors also are betting against corn as they raised their net-short positions, or bets on lower prices, to 106,768 contracts, up 58% from the prior week, CFTC data show.

Fund managers largely ignored daily export sales that all told came to more than 3 million tons of soybeans in the past 10 days, instead focusing on the favorable growing weather.

Drier weather is on the way in the next 11 to 15 days for many parts of the Midwest, especially the northeastern region that already had been dry for much of the past couple of months, according to MDA Information Services. If dry weather moves in now, that could be negative for soybeans that are in a critical growth phase.

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3. Rain Expected to Cause Flooding in Kansas, While Dry Weather Persists in Ohio

Rain is expected in parts of Kansas, Oklahoma, and Arkansas today that may cause flooding in some areas, according to the National Weather Service.

A flash flood warning has been issued for Northern Bourbon County in southeastern Kansas that’s good until 10:15 a.m. local time, the NWS said in a report on Monday.

“Doppler radar indicated a thunderstorm producing heavy rain across the warned area,” the agency said. “Up to 1 inch of rain has already fallen. Flash flooding is expected to begin shortly.”

Meanwhile in the Midwest, hot weather is forecast for parts of Ohio where rain has been fleeting for the past several months. Little or no rain has fallen in much of the state for the past 30 days, according to the National Weather Service.

The longer-term outlook shows the area will likely remain dry for at least the next 11 to 15 days, said Donald Keeney, a senior agricultural meteorologist at MDA Information Services.

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