Wheat futures lower overnight; speculators curb net-shorts in corn
1. Wheat futures lower in overnight trading
Wheat dropped in overnight trading as rainfall is expected in parts of the northern Plains this week, while corn and soybean futures remain near the lowest in four years.
Precipitation is expected in much of North Dakota, the biggest grower of spring wheat in the U.S., northern South Dakota, Minnesota, and Wisconsin in the next 24 hours, according to National Weather Service maps.
The weather is expected to remain cool in the northern Plains where spring varieties are growing for at least the next few days, NWS said.
About 74% of the U.S. spring wheat crop was in good or excellent condition at the start of last week, the Department of Agriculture said in a report. That compares with the 42% that earned top ratings at the same point a year earlier.
One percent of the crop was harvested.
USDA is scheduled to release its weekly crop progress report this afternoon.
Corn and beans were also lower in overnight trading as the focus remains on ample global supplies of both crops.
Stockpiles of corn worldwide in the 2024/2025 marketing year that starts on Sept. 1 are forecast at 311.6 million metric tons, up from 309.1 million in the 2023-2024 marketing year. Production of the grain is now seen at 1.23 billion metric tons, up from 1.16 billion a year earlier, the agency said.
Global soybean inventories are expected to jump in the 2024/2025 year to 127.9 million metric tons, up from 111.3 million tons in the current season, USDA said. World production of the oilseeds is forecast at 421.9 million metric tons, up from 395.4 million the previous year, USDA said.
Wheat futures for September delivery fell 9¾¢ to $5.29¼ a bushel overnight on the Chicago Board of Trade, while Kansas City futures lost 8¼¢ to $5.51½ a bushel.
Corn futures for December delivery dropped 3¢ to $4.00¼ a bushel.
Soybean futures for November delivery fell 2¢ to $10.25¼ a bushel. Soymeal lost $3.30 to $321.30 a short ton and soy oil was down 0.59¢ to 40.22¢ a pound.
2. Investors cut net shorts in corn to five-week low
Money managers reduced their net short positions, or bets on lower prices, in corn to the lowest level in five weeks, according to the Commodity Futures Trading Commission.
Investors held a net 300,310 futures contracts in corn in the seven days that ended on July 30, the agency said in a weekly report.
That’s down from 333,885 contracts a week earlier, and the lowest level since June 25.
Speculators also curbed their net shorts in soybeans to 169,679 futures contracts, down from 172,945 a week earlier. That’s the smallest bearish position in three weeks, CFTC data show.
In wheat, hedge funds and other large investment houses held a net short position of 40,405 futures contract, down from 41,016 contracts seven days earlier, also the smallest such position in five weeks, the government said.
Investors were short by 76,386 futures in soft red winter wheat, up from 73,159 contracts the week prior. That’s the largest bearish position since April 16, CFTC said in its report.
3. Flooding expected in parts of Wisconsin
Flood watches have been issued for much of central and southern Wisconsin and some counties in eastern Minnesota, according to the National Weather Service.
Runoff after excessive rainfall likely will lead to flooding of waterways in the area, the agency said in a report early this morning.
Rainfall is expected for several hours late tonight into tomorrow morning, NWS said.
Hot weather is expected in parts of central and eastern Illinois today as heat indexes are forecast to reach as high a 104° Fahrenheit.
Indexes Tuesday are forecast from 95° to 105°, though some isolated thunderstorms are expected in the afternoon. Gusty winds and hail are possible tomorrow afternoon, the agency said.
Source: https://www.agriculture.com/3-big-things-today-august-5-2024-8690147
