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3 Big Things Today, October 16

Soybeans, Corn Decline Overnight; Speculative Positions Little Changed Last Week.

1. Soybeans, Corn Lower Overnight on Forecasts For Drier Weather After Rainy Weekend

Soybeans and corn were lower in overnight trading as the rainfall from the weekend in a large part of the Corn Belt will move out and give way to drier weather.

As much as 8 inches of rain fell in a small band encompassing northern Illinois, across the southern tip of Lake Michigan into southern Michigan, which led to some flooding, according to the National Weather Service. That storm system is expected to dissipate.

Little or no rain is expected for the next three or four days, which should give growers a chance to continue the delayed harvest in some areas.

Another inch or more of precipitation is expected starting Saturday along the Kansas-Missouri border into the Southern Plains and east-central Texas, however, the NWS said. That, along with unfavorable weather in South American growing areas, is keeping prices from falling too far.

Soybean futures for November delivery fell 5¼¢ to $9.95 a bushel overnight on the Chicago Board of Trade. Soy meal lost $2.50 to $326.10 a short ton, and soy oil declined 0.04¢ to 33.65¢ a pound.

Corn futures for December delivery fell a penny to $3.51¾ a bushel overnight.

Wheat for December delivery was up ¾¢ to $4.40¼ a bushel in Chicago. Kansas City futures gained ¾¢ to $4.37 a bushel.

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2. CFTC Report Shows Little Change in Speculative Soybean, Corn Positions Last Week

Money managers barely changed their positions in the week through October 10, only slightly raising their net-long positions, or wagers on higher prices, in soybeans while increasing bets against corn.

Speculators were net long 25,869 soybean contracts last week, up from 23,135 contracts a week earlier, the Commodity Futures Trading Commission said in its weekly Commitment of Traders Report.

Investors were net short 150,963 corn contracts as of last Tuesday, up from 130,959 seven days prior, according to the CFTC.

Traders are likely weighing strong yield reports from much of the Midwest against harvest delays due to rainfall in much of the Corn Belt.

Soft red winter wheat investors were net short by 67,427 contracts as of last week, up from 49,284 contracts a week earlier, the CFTC said. Money managers were net long only 252 contracts as of Tuesday, well below the prior week’s 8,944 contracts, according to the 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.

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3. Frost Warning in Effect For Parts of Midwest, Flooding Reported in Southern Michigan

A frost warning is in effect this morning for parts of eastern Iowa, western Nebraska, northeastern Kansas, and extreme northwestern Missouri, according to the National Weather Service.

Temperatures fell into the low 30s overnight, so it’s unlikely crops will be hurt by the cool weather. Areas of frost have also formed in limited parts of Wisconsin, the NWS said.

Farther east, there’s flooding in parts of southern Michigan where 4 to 8 inches of rain fell in Van Buren, Kalamazoo, and Calhoun counties over the weekend, the agency said in a report overnight. A flood warning remains in effect in the area.

The good news for residents in the area is that the weather is expected to dry out for the rest of the week, the NWS said.

 

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