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3 Big Things Today, July 31

Corn, Soybeans Lower Overnight; Investors Less Bullish Grains, Raise Bean Bets.

1. Grains, Beans Lower in Overnight Trading as Cooler Weather, Rain Expected

Grains and beans were lower in overnight trading as weather in the Midwest turns cooler and some showers are expected this week.

High temperatures are expected to be in the 80s this week in much of the Midwest, much better for crops than the triple digits the region has seen in the past month. Overnight temperatures are expected to be in the 60s.

Rainfall is expected later in the week in parts of Nebraska, Kansas, Missouri, and Iowa, according to forecasters. Precipitation also will continue in parts of the eastern Midwest including parts of Illinois and Indiana where rain has inundated rivers, streams, and fields in recent weeks.

Corn for December delivery fell 5¼¢ to $3.82¾ a bushel overnight on the Chicago Board of Trade.

Soybeans for November delivery lost 11½¢ to $10.01½ a bushel overnight. Soy meal declined $4.20 to $324.30 a short ton, and soy oil futures lost 0.23¢ to 34.79¢ a pound.

Wheat for September delivery fell 4¢ to $4.77 a bushel overnight, and Kansas City futures dropped 4¼¢ to $4.76¾ a bushel.

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2. Money Managers Less Bullish on Corn, Wheat; Raise Bets on Higher Soybean Prices

Money managers were less bullish on grains last week while being a bit more positive on soybeans.

Speculative investors decreased their net-long positions in corn to 106,678 contracts in the week that ended on July 24 from 107,803 seven days earlier, according to the Commodity Futures Trading Commission.

That’s the smallest net-long position since investors were still bearish the market at the start of July.

Managers were net long by 33,051 soft red winter wheat contracts, down from 46,757 a week earlier. Bets on higher hard red winter wheat prices declined to 60,549 contracts, down from 70,751, according to the CFTC.

Investors, however, were more positive on soybeans, increasing their bets on higher prices to 35,953 contracts from 31,285 a week earlier.

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. Flash Flood Warning Issue For Western Kansas, Flooding Still an Issue in Illinois

A flash flood watch has been issued in southwestern Kansas as a storm moves northeast from New Mexico into the area bringing potentially severe thunderstorms.

“With a very moist air mass in place over western Kansas, thunderstorms that develop will be efficient precipitation producers with high rainfall rates,” the National Weather Service said in a report early Monday. “This area has seen significant rainfall in the past few days, so runoff will be enhanced by the moist soil conditions.”

Flooding is still an issue along the Mississippi River and its tributaries in Iowa and Illinois, according to the NWS. Some storms are possible in the area starting Tuesday, but coverage will remain low so most counties will not be affected.

Some rainfall is expected in parts of southern Michigan today, though any storms that develop aren’t expected to be severe, the NWS said.

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