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3 Big Things Today, October 2

Grains, Beans Slightly Lower Overnight; Speculators Still Short Corn, Long Beans.

1. Grains, Beans Again Lower as Harvest Continues Amid Dry Weather

Grains and soybeans were again a bit lower overnight amid strong harvest reports and favorable harvest weather.  

Yields have continued to come in strong over the weekend, and it’s likely that the actual yield results will be closer than the numbers released by the USDA last month.

Many had said that number was too high, but with yields looking better than expected, it’s likely they’ll come to fruition, analysts said.

Dry weather is expected this week for much of the Corn Belt, which should give growers a chance to get into fields and collect their crops. That’s good news for farmers who were unable to start or continue their harvest early last week.

Forecasters said they don’t expect rainfall or harvest delays at all this week.

Corn futures for December delivery fell 1¼¢ to $3.54 a bushel overnight on the Chicago Board of Trade.

Soybeans for November delivery lost a nickel to $9.63¼ a bushel overnight. Soy meal futures lost $1.30 to $314.50 a short ton, and soy oil fell 0.16¢ to 32.66¢ a pound.

Wheat for December delivery dropped 4½¢ to $4.43¾ a bushel in Chicago, while Kansas City futures declined 4¾¢ to $4.38 a bushel.

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2. Money Managers Still Bearish Corn, Extend Net-Long Positions in Soybeans

Money managers remained bearish on corn but added to their net-long positions last week.

Speculative investors were net-short corn by 121,671 contracts in the week that ended on September 26, according to the Commodity Futures Trading Commission.

Soybean investors, meanwhile, pushed their net-long positions, or bets on higher prices, to 25,013 contracts, the CFTC said in a report.

Wheat was also mixed with soft red winter net short by 55,714 contracts, but hard red winter continued to stay strong with speculators net long by 11,121 contracts, 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.

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3. Storms Forming Over The Rockies May Bring Snow to Foothills

An interesting weather system has formed in the Rockies that could bring some snow to the far western Plains.

“An early-season cold weather system could bring a foot or more of snow in the higher elevations of the central and northern Rockies early this week,” the National Weather Service said. “Snow could even fall at lower elevations in parts of Montana. The cold front separating this cold air in the west and warmer temperatures in the eastern U.S. will continue to be a focus for heavy rain in the Plains early this week.”

Some rainfall is in the forecast for parts of western Kansas, but storms are expected to be “isolated” and “widely scattered,” according to the NWS.

Little or no rain is seen elsewhere in the Midwest as maps are mostly quiet this morning in the Midwest.

 

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