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3 Big Things Today, July 11, 2022

Soybeans, Grains Jump Overnight; Investors Slash Net-Longs in Corn, Beans

1. Soybean, Grain Futures Jump in Overnight Trading

Soybeans and grains surged in overnight trading amid dry weather in much of the U.S. Midwest.

While much of the upper Corn Belt has received ample rain in the past week, several states including Kansas, most of Missouri, Oklahoma and Arkansas have received little or not precipitation, according to data from the National Weather Service.

Weekend rains favored the central and southeastern Midwest over the weekend, though storms will be "much spottier" for the next couple of weeks, Commodity Weather Group said in a report this morning.

Temperatures are expected to be in the 90s or low-100s in the central and southern Plains this week, the forecaster said.

In the Midwest next week, temperatures are forecast in the low- to mid-90s, and more intense heat in the Plains and far-western Midwest will threaten corn pollination, CWG said.

In the northern Plains and Canadian Prairies, meanwhile, hot weather is expected in the next two weeks, though soil moisture will limit stress on crops.

About 64% of the U.S. corn crop was in good or excellent condition at the start of last week, down from 67% a week earlier. Sixty-three percent of U.S. soybeans earned top ratings, down from 65% the previous week.

Soybean futures for November delivery jumped 33 1/4¢ to $13.98 3/4 a bushel overnight on the Chicago Board of Trade. Soymeal added $12.70 to $404.50 a short ton, while soybean oil futures gained 1.11¢ to 60.7¢ a pound.

Corn futures for December delivery were up 29 1/4¢ to $6.25 1/2 a bushel.

Wheat for September delivery surged 56 3/4¢ to $8.93 1/4 a bushel while Kansas City futures added 57 1/2¢ to $9.46 3/4 a bushel.

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2. Investors Slash Net-Long Positions in Corn and Beans

Money managers drastically cut their net-long positions, or bets on higher prices, in corn and soybeans last week, according to data from the Commodity Futures Trading Commission.

Investors held a net-157,976 corn-futures contracts in the seven days that ended on July 5, the CFTC said in a report.

That's down from 211,933 contracts a week earlier and the smallest such position since the week that ended on Oct. 13, 2020.

Speculators also curbed their bullish bets on soybeans to 101,697 contracts from 149,316 contracts a week earlier, the government said. That's the smallest bullish stance since Jan. 18.

In wheat, investors held a net-21,988 hard-red winter-wheat futures contracts as of last week, down from 24,699 contracts a week earlier, marking the smallest such position since Sept. 29, 2020.

Investors remained bearish on soft-red winter wheat, holding a net-short position, or bets on lower prices, of 1,978 futures contracts as of last Tuesday, the agency said.

That's up from a bearish position of 1,169 contracts the previous week and the largest net-short position since the seven days that ended on March 1, 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.


3. Thunderstorm Warnings, Watches Remain in Effect in Eastern Iowa

Severe thunderstorm warnings and watches remain in effect for parts of central to eastern Iowa into northern Illinois, according to the National Weather Service.

Several counties in eastern Iowa are under a severe thunderstorm warning as a line of disturbances move through the area at 40 miles an hour, the NWS said in a report early this morning.

Wind gusts overnight reached as high as 60 miles per hour, the agency said.

Dozens of counties in Iowa and Illinois are under a thunderstorm watch as wind gusts of 70 miles an hour were and still are possible in the area. Large hail also is a concern.

In southern Kansas and northern Oklahoman, meanwhile, heat indexes today are expected to reach as high as 107 degrees Fahrenheit, the NWS said.

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