By Karen Braun
FORT COLLINS, Colo., Could 31 (Reuters) – Chicago-traded corn and soybean futures ended Could greater than 10% off the month’s highs, and as of final week speculators had established their least bullish views of the yr.
Within the week ended Could 25, cash managers lowered their web lengthy place in CBOT corn futures and choices to 268,091 contracts from 291,025 per week earlier based mostly on information from the U.S. Commodity Futures Buying and selling Fee. That produced their least bullish stance since December. (https://tmsnrt.rs/3p0DsAb)
Most-active corn futures Cv1 fell 5.8% in the course of the week and commodity funds had been thought to have bought virtually 4 instances what they did, in keeping with the market’s current development of overestimating the promoting.
Nevertheless, cash managers reduce their web lengthy by 39% between Could 5 and Could 25. Futures dropped 11% throughout that timeframe.
Regardless of corn costs buying and selling properly off their early Could highs, speculators should not but snug with the brief aspect. Cash managers boosted their gross shorts by 69% within the newest three weeks, however the Could 25 whole was unusually low at simply 39,186 contracts. The five-year common for the week is about 270,000 gross shorts.
Different reportable speculators by Could 25 lowered their outright corn shorts to the fewest since June 2012, although their longs have fallen by 36% from the all-time excessive set in January. Cash managers have shed 28% of their outright longs because the finish of March, which was close to the current peak.
Corn buying and selling remained unstable late final week with most-active July corn on Thursday surging the every day restrict after almost ending limit-down on Tuesday. Futures rose 5.9% within the final three periods, although Friday’s shut of $6.56-3/Four per bushel was 2.75 cents decrease than on the earlier Friday.
Rumors about China presumably cancelling U.S. corn cargoes or limiting imports rocked the market mid-week, although the Asian nation has booked a powerful quantity of new-crop corn to this point. U.S. crop climate will likely be in heavy focus over the following a number of weeks.
SOYBEANS AND WHEAT
As of Could 25, cash managers held their least optimistic view on CBOT soybeans since August. They reduce their web lengthy to 139,390 futures and choices contracts in the course of the week from 152,584 per week earlier than. (https://tmsnrt.rs/3c0YXvD)
That’s properly off their current prime of 238,394 contracts set on Oct. 6, near the all-time excessive. Most-active soybean futures Sv1 rose 44% between Oct. 7 and Could 25, although international provide outlooks have tightened since then.
Cash managers have averted an escalation in brief soybean bets. Their gross shorts stood at 10,589 contracts as of Could 25, comparatively unchanged since late final yr, although they reduce outright longs by 20% within the newest two weeks. Different merchants’ gross soybean shorts have risen slowly because the finish of final yr to a largely regular stage.
In soybean meal, cash managers slashed their web lengthy for a second consecutive week by Could 25, almost leading to a document two-week selloff. (https://tmsnrt.rs/3i10BkP)
The online meal lengthy fell to 25,232 futures and choices contracts from 50,845 within the earlier week, and the brand new stance is funds’ least bullish since early September. The lengthy had been near 90,000 contracts on the finish of December.
Funds stay solidly optimistic on soybean oil futures and choices, as they raised their web lengthy by Could 25 by simply over 2,000 contracts to 85,327. Most-active soyoil futures fell 1.3% between Wednesday and Friday however stay near all-time highs.
Soybean meal futures rose a pair share factors late final week following a big dive by Could 25, settling 13.5% off the month’s excessive on Friday. Soybeans ended off 8% from the Could prime however simply fractionally decrease on the month.
Cash managers had been clinging to bullish CBOT wheat bets by Could 25, having lowered their web lengthy by almost 10,000 to 4,534 futures and choices contracts. Wheat futures bounced slightly late final week and funds are nonetheless seen barely lengthy heading into the brand new week.
In Kansas Metropolis wheat, cash managers lowered their web lengthy to 23,501 futures and choices contracts by Could 25 from 26,100 per week earlier, their third consecutive promoting week. They bought Minneapolis wheat for the primary time in seven weeks, trimming their web lengthy to 14,669 contracts from 16,415.
July Minneapolis wheat jumped greater than 6% between Wednesday and Friday, although Kansas Metropolis wheat was up 1.4%. CBOT wheat ended the month 10% decrease than at first.
Graphic- Managed cash web place in CBOT corn futures and optionshttps://tmsnrt.rs/3p0DsAb
Graphic- Managed cash web place in CBOT soybean futures and optionshttps://tmsnrt.rs/3c0YXvD
Graphic- Managed cash web place in CBOT soybean meal futures and optionshttps://tmsnrt.rs/3i10BkP
(Enhancing by Daniel Wallis)
(([email protected]; Reuters Messaging: [email protected]; Twitter: @kannbwx))
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