Funds actively cover CBOT corn, soy shorts as US demand picks up -Braun
The opinions expressed here are those of the author, a market analyst for Reuters.
By Karen Braun
NAPERVILLE, Illinois, Sept 8 (Reuters) -Speculators last week staged the largest round of short covering in four months across U.S. grains and oilseeds, though the collective mood remains the most bearish ever for the date.
This is anchored by a massive fund short in Chicago soybeans, resulting from ample global supplies and what had been poor export demand for U.S. beans. But demand for U.S. corn has been decent and investors have cut back on their price pessimism.
December CBOT corn futures CZ24 jumped more than 4% in the four-day week ended Sept. 3 after hitting a contract low of $3.85 per bushel in the prior week.
That represented the lowest price for most-actively traded corn futures since October 2020.
In the week ended Sept. 3, money managers slashed their net short position in CBOT corn futures and options by about 66,000 contracts to 176,211 contracts, their least bearish stance since May. While short covering was dominant, there was also a significant uptick in gross long positions during the week.
Funds' new net short in corn is only half as large as their all-time record set in July, though it ties with 2016 for the date's largest net short.
But in soybeans, funds' massive net short is still safely a record for the date and twice as large as the previous high set in 2019. That is despite last week's short covering and a recent flurry of U.S. export sales.
Money managers through Sept. 3 cut their net short in CBOT soybean futures and options to a nine-week low of 154,096 contracts, down more than 22,000 on the week. But unlike in corn, there was a slight reduction in gross soybean longs.
CBOT November soybeans SX24 rose more than 2% through Sept. 3, continuing to build from their mid-August low of $9.55 per bushel.
Investors went into the U.S. summer growing season already carrying large short positions in corn and soybeans, and their early acceptance of bumper harvests for both crops has cut back on price volatility as they did in the past few years.
The market this week will be watching for the U.S. Department of Agriculture’s monthly supply and demand reports on Thursday. Analysts expect the record U.S. soybean crop to hold, though corn output is seen slightly contracting.
December corn and November soybean futures over the last three sessions both fell fractionally but traded above the $4- and $10-per-bushel marks, respectively.
WHEAT AND SOY PRODUCTS
Money managers covered short positions in CBOT wheat futures and options through Sept. 3, cutting their net short to a 13-week low of 42,624 contracts, down more than 13,000 on the week.
CBOT December wheat WZ24 hit its lifetime low of $5.20-3/4 per bushel in the prior week but surged nearly 6% through Sept. 3. Futures were unchanged over the subsequent three sessions.
Soybean meal is the only major U.S. grain or oilseed in which funds remain bullish, having held a net long since mid-April. That almost went away in mid-August when futures notched new lows, but speculators have been net buyers in the weeks since.
Money managers through Sept. 3 boosted their net long in CBOT soybean meal by more than fourfold to 23,171 futures and options contracts, evenly split between new longs and exiting shorts.
But short covering, the week’s overall theme, was most prominent in CBOT soybean oil. Money managers slashed their net short by almost 21,000 contracts to 47,527 futures and options contracts, though that remains heavily bearish in a historical context.
Karen Braun is a market analyst for Reuters. Views expressed above are her own.
Graphic- Managed money net position in CBOT corn futures and options https://tmsnrt.rs/47fa67i
Graphic- Managed money net position in CBOT soybean futures and options https://tmsnrt.rs/3XxmYlY
Editing by Sam Holmes
Últimas notícias
Isenção de Responsabilidade: As entidades do XM Group proporcionam serviço de apenas-execução e acesso à nossa plataforma online de negociação, permitindo a visualização e/ou uso do conteúdo disponível no website ou através deste, o que não se destina a alterar ou a expandir o supracitado. Tal acesso e uso estão sempre sujeitos a: (i) Termos e Condições; (ii) Avisos de Risco; e (iii) Termos de Responsabilidade. Este, é desta forma, fornecido como informação generalizada. Particularmente, por favor esteja ciente que os conteúdos da nossa plataforma online de negociação não constituem solicitação ou oferta para iniciar qualquer transação nos mercados financeiros. Negociar em qualquer mercado financeiro envolve um nível de risco significativo de perda do capital.
Todo o material publicado na nossa plataforma de negociação online tem apenas objetivos educacionais/informativos e não contém — e não deve ser considerado conter — conselhos e recomendações financeiras, de negociação ou fiscalidade de investimentos, registo de preços de negociação, oferta e solicitação de transação em qualquer instrumento financeiro ou promoção financeira não solicitada direcionadas a si.
Qual conteúdo obtido por uma terceira parte, assim como o conteúdo preparado pela XM, tais como, opiniões, pesquisa, análises, preços, outra informação ou links para websites de terceiras partes contidos neste website são prestados "no estado em que se encontram", como um comentário de mercado generalizado e não constitui conselho de investimento. Na medida em que qualquer conteúdo é construído como pesquisa de investimento, deve considerar e aceitar que este não tem como objetivo e nem foi preparado de acordo com os requisitos legais concebidos para promover a independência da pesquisa de investimento, desta forma, deve ser considerado material de marketing sob as leis e regulações relevantes. Por favor, certifique-se que leu e compreendeu a nossa Notificação sobre Pesquisa de Investimento não-independente e o Aviso de Risco, relativos à informação supracitada, os quais podem ser acedidos aqui.
