3 Big Things Today, October 24
1. Soybeans Surge on Bullish Signals; Corn, Wheat Little Changed
Soybean futures rose in overnight trading on continued signs of strong demand for U.S. supplies and on signs that investors are more bullish on grains and oilseeds.
Exporters last week reported sales of 192,000 and 185,000 metric tons of U.S. soybeans to unnamed overseas buyers and a large sale of 706,500 tons of beans to China, according to the Department of Agriculture.
Sales of soybeans since the start of the marketing year on September 1 are up 26% from the same time frame a year earlier, according to the USDA. Corn sales are up 89% vs. the year-ago period.
Investors last week also were more bullish on both corn and soybeans.
Soybeans for November delivery rose 14¼¢ to $9.97¼ a bushel on the Chicago Board of Trade. Soy meal futures for December delivery added $3.60 to $310.10 a short ton, and soy oil gained 0.93¢ to 36.05¢ a pound.
Corn futures for December delivery gained ½¢ to $3.53 a bushel in Chicago.
Wheat futures for December delivery rose ¼¢ to $4.14¾ a bushel in Chicago, while Kansas City futures added 1½¢ to $4.23 a bushel.
2. Money Managers Increase Bullish Bets on Beans Amid Demand
Money managers were increasingly bullish on soybean and less bearish on corn futures last week amid strong demand for both crops, the Commodity Futures Trading Commission said late on Friday.
Investors were net-long 88,272 soybean futures contracts as of October 18, up from 68,789 contracts a week earlier, the biggest such position since August, the Commodity Futures Trading Commission said in a report on Friday. A net-long position indicates a bullish tone.
Export sales have jumped since the start of the marketing year on September 1, as overseas buyers take advantage of low prices and stock up on much-needed supplies.
Speculators were also less bearish on corn futures. Investors were net-short 51,986 corn futures contracts in the week that ended on October 18, less than half the 121,914 the previous week and the lowest level since the seven days that ended on July 22, CFTC said. A net-short position means investors are bearish.
Corn sales also have been strong since the start of the marketing year, according to the USDA.
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3. Weather to Stay Dry Today, Rain Forecast Later This Week
Other than some dense fog in parts of the Midwest, the weather maps are quiet this morning, according to the National Weather Service.
The region is forecast to be mostly dry today and tomorrow, which should allow growers to continue harvesting corn and beans that are ready for collection.
Some rain is forecast this week that will slow the harvest a bit, said Donald Keeney, a senior ag meteorologist at MDA Information Services. The 11- to 15-day outlook is wetter in much of the eastern Midwest, which also could slow collection of corn and beans.
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