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3 Big Things Today, June 4

Soybeans, Corn Decline Overnight; Money Managers Raise Bullish Bets on Beans.

1. Soybeans, Corn Decline Overnight on Favorable Growing Weather

Soybeans and corn plunged on favorable Midwest weather in overnight trading. Wheat also declined.

Hot weather in the Midwest combined with periodic precipitation will keep crop conditions at lofty levels.

About 72% of the U.S. soybean crop was planted as of last week, and that number should again jump as growers in many areas had good planting weather, according to the USDA. Some 47% of the crop was emerged as of last week.

Corn planting was 92% complete last week, and 72% of the crop was emerged. The USDA said 79% of U.S. corn was in good or excellent condition, up from 65% during the same week a year earlier.

Temperatures in central Iowa this week will be in the upper 80s and lower 90s, but rainfall is forecast on Wednesday and Friday, which should keep crop prospects healthy.

Soybean futures for July delivery dropped 10¼¢ to $10.11 a bushel overnight on the Chicago Board of Trade. Soy meal lost $2.70 to $371.50 a short ton, and soy oil fell 0.06¢ to 31.13¢ a pound.

Corn futures declined 4¢ to $3.87½ a bushel overnight.

Wheat for July delivery dropped 8½¢ to $5.14¾ a bushel overnight, while Kansas City futures lost 10¢ to $5.30¾ a bushel.


2. Speculative Investors Raise Bullish Bets on Soybeans, Cut Net Longs on Corn                            

Money managers boosted bullish bets on soybeans last week while curbing net-long positions in corn, according to the Commodity Futures Trading Commission.

Speculators were net long by 163,590 soybean futures contracts as of May 29, up from 94,796 contracts seven days earlier, the CFTC said in a report.

Investors were net long by 180,790 corn contracts last week, down from 190,935 contracts the prior week. Money managers likely curbed their bets on higher corn prices amid favorable weather in the U.S. Corn Belt.

Speculative investors held a net-long position in soft red winter wheat of 25,826 futures contracts, well above the prior week’s 8,819 contracts. Investors were net long by 53,608 hard red winter wheat contracts last week, up from 45,929 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. Isolated Storms Expected in Parts of Iowa, Illinois; Southern Plains May See Severe Weather

The weather maps look relatively quiet this morning as the final remnants from Tropical Storm Alberto move off the East Coast.

Some isolated thunderstorms are in the forecast for parts of eastern Iowa and western Illinois after midnight tonight, but no severe weather is expected, the National Weather Service said in a report early Monday morning.

Chances of thunderstorms will continue for the area all week.

Thunderstorms are also a possibility in the eastern half of the Oklahoma and Texas panhandles, according to the NWS. Any rainfall will help what’s left of the winter wheat crop as temperatures are pegged as high as 105˚F. this afternoon.

“Isolated thunderstorms are possible today across the eastern half of the Oklahoma and Texas panhandles,” the NWS said. “A strong to marginally severe storm can`t be ruled out with hail and strong winds possible.”

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