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3 Big Things Today, August 22, 2022

Soybeans Higher in Overnight Trading; Investors Raise Bullish Bets on Corn

1. Soybean Futures Rise in Overnight Trading

Soybeans futures were higher in overnight trading as dry weather lingers in some U.S. growing areas.

Little or no rain has fallen in parts of central and southern Nebraska, Kansas and much of Oklahoma in the past seven days, according to the National Weather Service's precipitation page.

Most of South Dakota and western North Dakota also have seen little rain in the past seven days, the agency said.

Still, soybean prices were capped and grains were little changed as some precipitation landed in areas that badly needed moisture. Rain fell in the past week in parts of western Iowa and much of Missouri, maps show.

About 36% of Missouri was suffering from drought conditions as of last week, down from 38% a week earlier, according to the U.S. Drought Monitor.

Roughly 38% of Iowa was seeing drought, unchanged week-to-week, the monitor said.

Also weighing on corn and wheat prices is the continued shipments of grains from Ukraine ports.

Exports of agricultural products from the besieged country may reach as high as 4 million metric tons in August, up 33% from July, after an agreement was implemented at the start of the month to move grain out of the country, the Ukrainian Agrarian Council said today.

Soybean futures for November delivery rose 8¢ to $14.12 a bushel overnight on the Chicago Board of Trade. Soymeal was up $7.10 to $409.40 a short ton, while soybean oil futures fell 0.05¢ to 65.65¢ a pound.

Corn futures for December delivery were unchanged at $6.23 1/4 a bushel.

Wheat for December delivery were up 2 3/4¢ to $7.73 3/4 a bushel while Kansas City futures gained 3¢ to $8.50 a bushel.

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2. Speculators Raise Bullish Bets on Corn Futures

Money managers raised their net-long positions, or bets on higher prices, in corn futures in the seven days that ended on Aug. 16 while narrowly reducing their bullish bets on beans, according to data from the Commodity Futures Trading Commission.

Investors held a net-142,646 corn-futures contracts last week, the CFTC said in a report.

That's up from 134,763 contracts a week earlier and the largest such position since the week that ended on July 5.

Speculators, however, reduced their net-longs in soybeans to 101,502 futures contracts, down slightly from 102,354 contracts a week earlier, the agency said.

In wheat, investors reduced their bullish bets on hard-red winter futures to 7,231 contracts last week from 7,651 contracts a week earlier. That marks the smallest such position since the seven days that ended on Sept. 1, 2020, the government said.

Money managers reduced their net-short positions, or bets on lower prices, in soft-red winter wheat last week to 21,830 futures contracts. That's down from a bearish position of 24,081 contracts a week earlier, the CFTC said in its report.

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. Flood Watches Issued For Parts of Oklahoma, Arkansas

Flood watches and advisories are in effect for a large swatch of land stretching the length of southern Oklahoma and southern Arkansas, according to the National Weather Service.

From 2 to 3 inches of rain have fallen already in the area with another inch possible in the warned areas, the NWS said in a report early this morning.

"Excessive runoff may result in flooding of rivers, creeks, streams, and other low-lying and flood-prone locations," the agency said. "Flooding may occur in poor drainage and urban areas. Low-water crossings may be flooded."

Further north in Iowa, fog is expected in much of the state today before giving way to showers and scattered thunderstorms starting Tuesday evening and lasting through Sunday. 

Severe weather isn't expected at this time, the agency said. 

  

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