By Karen Braun
FORT COLLINS, Colo., Aug 1 (Reuters) – Grain markets have just lately been quieter than they’ve been for a lot of this yr, however speculators at the moment are looking forward to the U.S. corn and soybean yield forecasts due on Aug. 12 from the Division of Agriculture.
That report has delivered large surprises prior to now, so except there are demand developments or a serious shift within the climate forecast, buyers could be hesitant to make place changes forward of time.
Within the week ended July 27, cash managers elevated their web lengthy place in CBOT corn futures and choices to 228,009 contracts from 223,302 per week earlier than primarily based on knowledge from the U.S. Commodity Futures Buying and selling Fee. (https://tmsnrt.rs/3rH8C14)
Though it was a small change, that marked funds’ first back-to-back weeks of web shopping for in corn since late March, simply earlier than U.S. planting intentions. December corn futures CZ1 are 20% greater than they have been in late March however nearly 15% off Might’s contract excessive.
Nevertheless, corn open curiosity has fallen greater than 20% since mid-June after being at or close to all-time highs for the primary few months of the yr, and that decline is extra dramatic in contrast with different years. Open curiosity was down 4% within the week ended July 27 to the bottom ranges since October.
The identical pattern is true in soybeans, as open curiosity misplaced 8% by means of July 27, reaching the bottom level since January 2020 however sustaining principally common ranges for the time of yr.
CBOT wheat open curiosity stays at a 12-year low for the date. Moreover, July buying and selling volumes for corn, soybeans and wheat have been decrease than in earlier years.
Cash managers trimmed their web lengthy in soybean futures and choices by means of July 27 by lower than 2,000 contracts, dropping it to 94,051 contracts. However they flipped to a web lengthy in CBOT wheat of three,067 futures and choices contracts from a web wanting 3,770 per week earlier. (https://tmsnrt.rs/3xpceGl) (https://tmsnrt.rs/3ifnEb8)
CBOT wheat futures WU1 jumped greater than 4% during the last three periods as drought continues to batter wheat within the northern U.S. Plains. A crop tour by means of prime spring wheat producer North Dakota final week discovered the worst yield potential for the reason that tour started in 1993.
The state of the spring wheat crop has merchants cautious of corn and soybean potential within the northern United States and different areas that have been too dry final month. However rains shifting by means of Iowa on Friday together with the potential for some extra weekend moisture to different elements of the Corn Belt provided some yield optimism.
Corn CZ1 and soybean futures SX1 fell fractionally between Wednesday and Friday as drier U.S. forecasts within the longer vary have been offset by demand issues. Latest U.S. corn and soybean export gross sales have been under common, and prime purchaser China has been quiet.
Graphic- Managed cash web place in CBOT corn futures and optionshttps://tmsnrt.rs/3rH8C14
Graphic- Managed cash web place in CBOT soybean futures and optionshttps://tmsnrt.rs/3xpceGl
Graphic- Managed cash web place in Chicago wheat futures and optionshttps://tmsnrt.rs/3ifnEb8
(Modifying by Matthew Lewis)
(([email protected]; Twitter: @kannbwx))
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