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3 Big Things Today, February 12

Soybeans, Grains Jump Overnight; Money Managers Reduce Bearish Bets on Crops

1. Soybeans, Grains Jump Overnight on Weaker Dollar, Rising Palm Oil

Soybeans and grains were higher overnight, as a weaker dollar gives futures a boost and improving palm oil prices underpin oilseeds.

The dollar dropped 0.2% in overnight trading to the lowest level in almost a week. That gives overseas buyers better purchasing power when buying dollar-denominated goods including agricultural products, and may boost export sales.

Palm oil prices in Malaysia rose to the highest level in a month on Monday, which also may turn buyers toward soybeans.

Soybean futures for March delivery jumped 17½¢ to $10.00½ a bushel overnight on the Chicago Board of Trade. Soymeal futures added $9.90 to $353.70 a short ton, and soy oil rose 0.25¢ to 32.21¢ a pound.

March corn added 3½¢ to $3.65½ a bushel in Chicago.

Wheat for March delivery gained 7¾¢ to $4.56¾ a bushel overnight. Kansas City futures rose 8¢ to $4.73½ a bushel.

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2. Money Managers Reduce Net-Short Positions in Corn, Beans, Bullish Hard Red Winter Wheat

Speculative investors reduced their net-short positions in corn, soybeans, and soft red winter wheat and again turned bullish on hard red winter wheat.

Investors were net short positions, or bets on lower prices, of 84,872 corn contracts in the week that ended on February 6, according to the Commodity Futures Trading Commission. That’s well below the 129,054 a week earlier and the lowest since September.

Money managers were net short by 12,595 soybean contracts as of last week, down from 23,142 seven days earlier, the CFTC said in a report. That’s the lowest such positions since December 18, government data show.

Investors have become less bullish on grains and soybeans in recent weeks due to dry weather in Argentina and the U.S. Southern Plains, along with a weaker dollar that may boost demand.

Speculators reduced their net-short positions in soft red winter wheat to 78,256 contracts last week from 91,532 seven days earlier, the CFTC said.

Money managers were actually net long by 13,560 hard red winter wheat contracts as of last week, the first bullish position in the grain since October.

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3. Wind Chills Near -55˚F. Expected in Parts of Montana on Monday Morning

It’s bitterly cold in the northern U.S. this morning with wind chills today expected to drop as low as -55˚F.

Wind chill advisories are in effect for most of Montana, North Dakota, and northern Minnesota, according to the National Weather Service.

The wind chill this morning in northern Montana is expected to hit -55˚F., the NWS said in a morning report. That can cause frostbite in as little as 10 minutes, the agency said.

Farther east, the wind chills aren’t as bad, and are only expected to hit -35˚F. this morning according to the NWS.

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