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Wheat Markets 3 to 5 Cents Lower
Wheat futures are 4 to 5 cents lower in all three contract markets. Australia got some short term drought relief in NSW, with up to 4 inch totals. Chicago was up 7 1/4 cents on Friday but slipped 1 3/4 cents lower for the week. Preliminary open interest increased 3,616 contracts on the Friday SRW rally. The KC futures closed 6 1/4 higher Friday and gained 2 cents on the week. Minneapolis HRS wheat futures lost 7 3/4 cents on the week. CFTC released their commitment of traders report, showing positions for all of the wheat futures as of 10/29. Chicago wheat still featured a net long by managed money, although the position shrank by 7,057 contracts from the previous week. Kansas City wheat saw an increase to the fund net short position, at 29,389 contracts. Funds reversed course and added to their net long in MPLS wheat. As of Tuesday, they were net long 9,362 contracts.
Corn Market 2 to 3 Cents Lower
Corn futures are 2 to 3 cents lower this morning. They closed fractionally lower on Friday, with Dec futures gaining 2 1/2 on the week. The Buenos Aires Grain Exchange pegged this year’s corn planting progress at 40.2% of their 6.4 million hectares (15.815 million acres). At this time last year Argentine corn was 35.5% planted for their expected 6.3 mil HA (15.568 mil ac). The CFTC report showed managed money spec funds expanded their net short position by 9,282 contracts from the previous week. They were net short 85,337 contracts as of 10/29. The IEG Vantage group estimated US corn yield increased to 168.6 bpa, raising their production forecast to 13.792 bil bushels. Brokerage firm FCS is using 170 bpa. USDA’s first estimate for 2020 corn acres is 94.5 million. The next revision will be in February for the Outlook Forum.
Soybean Market Fractionally Lower As Overnight Buying Fades
Soybean futures start off Monday UNCH to fractionally lower. The Friday close was 4 to 7 1/2 cents higher. First of the month investment money was in play, with preliminary open interest rising 7,413 contracts. Soybean meal was down $0.50/ton but finished the week 60 cents/ton higher. Soybean oil finished the first trading day in November with a 28 point gain. The USDA CAIR Fats & Oils report showed an 8.46% reduction in September beans crushed vs. August, reported at 4.87 MMT. The Commitment of Traders report showed that as of 10/29 managed money specs held a 72,325 contract net long position, having expanded it by 3,503 contracts over the previous Tuesday. That group has been net long for 4 weeks now. IEG has released their updated prediction for the 2019/20 soy crop, bumping up US average yield by 0.5 bpa to 47. IEG also increased their expected soybean production number to 3.553 bil bushels. The FCS brokerage firm put their yield estimate at 47.5 bpa. USDA’s preliminary estimate for 2020 has soybean acreage rebounding to 84.0 million.
