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3 Big Things Today, August 6

Soybeans Lower Overnight; Money Managers Reduce Bearish Bets in Corn, Beans.

1. Soybeans Fall Overnight Amid Ongoing Trade Dispute

Soybeans declined overnight after China said it would impose tariffs on $60 billion worth of U.S. goods if the Trump administration followed through on threats to put 25% duties on $200 billion worth of Chinese goods.

The salvo was the latest in the ongoing trade spat between the two countries. The U.S. and China have already imposed tariffs on $34 billion worth of each others goods, and the U.S. has threatened to put levies on another $200 billion worth of Chinese goods.

Media reports last week indicated that Washington was prepared to bump the rate on those tariffs to 25% from 10%, eliciting the latest response from Beijing.

Soybean futures for November delivery fell 7¾¢ to $8.94½ a bushel overnight on the Chicago Board of Trade. Soy meal fell $2.40 to $329.40 a short ton, and soy oil rose 0.05¢ to 28.91¢ a pound.

Corn futures for December delivery were unchanged at $3.84¼ a bushel overnight.

Wheat for September delivery rose 1¼¢ to $5.57¾ a bushel in Chicago, while Kansas City futures gained 1¢ to $5.67 a bushel.


2. Speculative Investors Reduce Net Shorts in Corn and Beans, Still Bullish on Wheat

Money managers reduced their net-short positions, or bets on lower prices, in corn and soybeans last week, according to the Commodity Futures Trading Commission.

Speculators were net short by 95,613 corn futures contracts in the seven days that ended on July 31, the CFTC said in a report. That’s down from 164,923 contracts a week earlier.

Investors held net-short positions in soybeans totaling 66,559 futures contracts at the end of last month, down from 73,359 a week earlier, the agency said.

Speculative investors were less bearish on corn and soybeans amid declines in some Midwestern states’ crop conditions and recent signs of demand from overseas buyers.

Money managers were still positive on wheat, however, as net-long positions, or bets on higher prices, in soft red winter wheat jumped to 51,277 futures contracts from 22,603 a week earlier.

Net longs in hard red winter wheat almost doubled to 37,981 contracts from 19,822 seven days earlier, according to the CFTC.

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.


3. Thunderstorms Forecast in Parts of Minnesota, Eastern Missouri Starting Monday

Thunderstorms are forecast for parts of Minnesota today and tomorrow, though they’re not expected to be severe, according to the National Weather Service.

“A few thunderstorms are possible, mainly this morning,” the NWS said in a report early Monday morning. “The main threat will be lightning.”

There’s also a chance for storms in parts of eastern Missouri that may turn severe starting late this morning, the NWS said. The chance of storms increases significantly across the region tonight.

The biggest threats associated with the storms, which could last for several days, include hail and damaging winds, the agency said. The chance of thunderstorms continues from Tuesday through Thursday night, then again from Friday afternoon through Sunday.

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