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3 Big Things Today, September 5

Grains, Beans Higher in Overnight Trading; Money Managers Increase Net Shorts in Corn.

1. Grains, Soybeans Higher Overnight After Long Labor Day Weekend

Grains and beans were higher in overnight trading on Tuesday as traders get back to work after a long weekend.

Little rain fell over the weekend in much of the Midwest with only Wisconsin and parts of Minnesota receiving measurable rainfall.

Some areas in South Dakota and Nebraska received trace amounts of precipitation, according to the National Weather Service.

Some analysts are saying traders are bullish on demand after last week’s Export Sales Report that showed strong interest in U.S. supplies as the price of palm oil, a rival cooking oil to soybean oil, and wheat were strong overseas, which may bring buyers to the U.S.

Corn futures for December delivery rose 3½¢ to $3.58¾ a bushel overnight on the Chicago Board of Trade.  

Soybean futures for November delivery gained 12¢ to $9.61½ a bushel. Soy meal added $3.90 to $302.70 a short ton, and soy oil futures rose 0.11¢ to 35.78¢ a pound.

Wheat for December delivery rose 6¢ to $4.44¾ a bushel in Chicago, while Kansas City futures gained 6½¢to $4.45¼ a bushel.


2. Money Managers Extend Net Shorts in Corn, Reduce Bearish Bets in Beans

Money managers extended their net-short positions, or bets on lower prices, in corn while reducing bearish bets on soybeans.

Speculators were net short in corn by 63,532 contracts as of August 29, more than double the prior week, according to the Commodity Futures Trading Commission’s weekly Commitment of Traders Report.

Investors, however, were net short 32,677 soybean contracts, down from 36,295 a week earlier, the CFTC said in a report.

Soft red winter’s net-short position totaled 70,126 contracts, just above the previous week’s 68,790 contracts, government data show. Speculators were net long hard red winter wheat by 17,516 contracts, down from 23,334 contracts a week earlier, according to the CFTC.

In other news, Informa Economics pegged U.S. corn yields at 169.2 bushels an acre, up from a month earlier projection of 165.9 bushels, Reuters reported, citing trade sources. The firm raised its soybean forecast to 49.4 bushels an acre from 47.3 bushels a month earlier.

Corn output will total 14.123 billion bushels and soybean production is estimated at 4.384 billion bushels, Informa said.


3. Scattered Thunderstorms Expected in Parts of Eastern Midwest Tuesday

Scattered thunderstorms are expected in parts of southern Illinois, southern Indiana, and southeastern Missouri this afternoon, according to the National Weather Service.

Heavy rainfall is expected in some parts of the region along with lightning and gusty winds, the NWS said in a report early Tuesday.

Some frost is possible overnight in parts of north-central Nebraska in the Platte River Valley. Overnight lows will stay in the 30s so plant damage wouldn’t occur at those temperatures.

Thunderstorms are also possible in the area, but severe weather isn’t expected, according to the NWS.



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