Funds restore bearish views in CBOT corn, ease bullishness in beans, meal -Braun

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NAPERVILLE — Speculators’ views in Chicago-traded soybeans and soybean meal final week fell to the least bullish ranges since November, whereas funds cranked up bearish bets in CBOT wheat and returned to the brief aspect in corn.

Cash managers’ web longs in beans, meal and Kansas Metropolis wheat as of April 25 nonetheless outweighed the web shorts in CBOT and Minneapolis wheat, corn and soybean oil, however the mixed web lengthy dipped beneath 30,000 futures and choices contracts for the primary time since August 2020.

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August 2020 was additionally the final time funds held a mixed web brief in U.S. grains and oilseeds. Since then, the mixed web lengthy hit an all-time excessive close to 840,000 futures and choices contracts in April 2022.

CBOT futures confronted important strain within the week ended April 25. Within the July contracts, soybeans and soymeal fell 5%, corn and soyoil shed round 6% and CBOT wheat plunged 8%.

Cash managers flipped to a web brief place in CBOT corn futures and choices of 15,297 contracts as of April 25, in contrast with their web lengthy of 49,434 per week earlier. That transfer was nearly evenly break up between new gross shorts and the discount of longs, and it snapped funds’ five-week corn shopping for streak.

On the industrial aspect, web shopping for in corn futures and choices amongst producers, customers and different retailers exceeded 65,000 contracts throughout the week, equal to round 325 million bushels. Gross shorts in that class fell to the bottom ranges since June 2020.

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Cash managers by means of April 25 elevated their web brief in CBOT wheat futures and choices to 113,012 contracts from 102,983 per week earlier as new shorts continued to pile on.

The one interval wherein funds have been extra bearish towards CBOT wheat was between July 2016 and January 2018. Open curiosity in CBOT wheat futures and choices as of April 25 was the date’s lowest since 2009, and open curiosity is 37% lighter now than in January 2018.

Within the week ended April 25, cash managers diminished their web lengthy in CBOT soybeans by almost 48,000 to 87,208 futures and choices contracts, a 22-week low. Most of that was lengthy liquidation, and though funds added almost 9,000 gross shorts, they continue to be traditionally mild on bearish soy bets.

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Cash managers’ bullish bets in CBOT soybean meal futures and choices hit a 21-week low on April 25 of 86,373 contracts, down from the prior week’s web lengthy of 105,682. Like beans, funds have been predominantly pulling longs out of meal throughout the week whereas gross shorts ticked upward.

As of April 25, cash managers’ stance in CBOT soybean oil futures and choices was probably the most bearish since August 2019 at 19,555 contracts versus the web wanting 15,743 per week earlier. Fund promoting has turn into a latest mainstay in soyoil, occurring in 18 of the final 23 weeks.

ADDITIONAL PRESSURE

The downturn continued for corn and wheat futures between Wednesday and Friday, possible growing bears’ latest momentum within the grains. July corn fell 3.7% over the past three periods, together with the most-active contract’s worst one-day loss since July on Thursday as China canceled extra U.S. corn cargoes.

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Corn futures completed greater on Friday however had fallen to $5.72 per bushel throughout the session, the most-active contract’s lowest stage since July.

Most-active CBOT wheat fell almost 3% over the past three periods and featured a dip on Friday to the bottom ranges since July 2021. The Kremlin on Friday reiterated that the Ukraine grain export deal’s outlook isn’t good, and Russia could cease cooperating with the initiative from Might 18 if its requests go unfulfilled.

Unfavorable sentiment in grains and oilseeds has partially stemmed from Brazil’s large soybean and corn crops creating intense competitors for U.S. provides. The planting tempo of U.S. corn and soybeans has been operating at an above-average tempo regardless of issues about widespread cooler climate.

July soybeans added a pair cents between Wednesday and Friday, although CBOT meal futures fell 0.6% and oil dropped 0.9%. Most-active soymeal on Thursday hit five-month lows, and July soybean oil on Thursday and Friday touched 50.57 cents per pound, the most-active contract’s lowest since mid-April 2021. Karen Braun is a market analyst for Reuters. Views expressed above are her personal.

(Writing by Karen Braun Modifying by Matthew Lewis)