Latest news with #cornbelt
Zawya
4 days ago
- Business
- Zawya
Soyoil around 18-month highs, grains fall on good crop weather
HAMBURG - Chicago soyoil hit its highest in around 18 months on Monday, supported by U.S. biofuel blending proposals that are likely to increase demand, while favourable U.S. weather conditions drove wheat and corn lower. Crude oil fell after renewed military strikes by Israel and Iran over the weekend left oil production and export facilities unaffected, easing concern about disruption of crude supplies. That removed some of the support for soybean prices, which tend to move in tandem with oil, that was seen on Friday. The larger-than-expected biofuel blend proposals, however, still supported the soy complex. The Chicago Board of Trade's most-active soyoil rose 5.7% to 53.50 cents per pound at 1131 GMT, around its highest since December 2023. Soyoil gains also pulled soybeans up 0.1% at $10.71-3/4 per bushel. Wheat fell 1.2% to $5.37-1/4 a bushel as the U.S. winter wheat harvest accelerates. Corn fell 1.1% to $4.39-1/2 a bushel, weakened by favourable weather forecasts for crop development in the U.S. corn belt. 'Soybeans and soyoil are being underpinned by the Trump administration's larger-than-expected biofuel blending proposals which would generate more demand for soyoil and so soybeans," said Matt Ammermann, StoneX commodity risk manager. "The Trump Administration is not known to be renewable energy-friendly, but the substantial increase could be intended to reduce the sting of the trade war with China, which has hugely damaged U.S. soy exports to China.' Traders await weekly crop ratings on Monday from the U.S. Department of Agriculture, with U.S. winter wheat harvesting accelerating, corn and soybean planting is finishing. 'Wheat and corn are weaker today as crop weather in the U.S. is looking very positive this week, with just the right mix of sunshine needed for the winter wheat harvest with a little rain needed for corn development,' said Ammermann. 'Other north hemisphere wheat crops are also looking good, especially in the Black Sea. This raises the prospects of extra competition from the Black Sea to exporters in the U.S. and other regions.'
Zawya
09-06-2025
- Business
- Zawya
Funds' bearish sentiment on US grains and oilseeds hits nine-month high: Braun
(The opinions expressed here are those of the author, a market analyst for Reuters.) NAPERVILLE, Illinois - Speculators dug deeper into bear territory last week across U.S. grain and oilseed futures, and with this time of year known to feature plenty of uncertainties, investors must keep their eyes glued on upcoming weather forecasts for the U.S. Corn Belt. In the week ended June 3, money managers' combined net short position across U.S. grain and oilseed futures and options surpassed 400,000 contracts, up more than 90,000 on the week. That marks their most bearish collective position since early September and their most bearish open to June in eight years. Just four months ago, the combined net long topped out at 300,000 contracts. Last week's move was driven by heavier selling in corn, soybeans and soybean oil. Money managers maintained bullish CBOT soybean oil bets through the week ended June 3, but they slashed their net long futures and options contracts by 22,000 to 31,990 contracts due to negative sentiment on the U.S. biofuels front. Money managers nearly erased bullish bets in CBOT soybean futures and options, reducing their net long to 8,601 contracts from 36,697 a week earlier. Funds' bearish soymeal position remained near-record large as prices have traded sideways over the last several weeks, and they also maintained sizable net shorts across the wheat flavors. CORN FOCUS Last week's net selling in corn was primarily driven by a large wave of new gross short positions, a trend that has been present in six of the last seven weeks. As of June 3, money managers' net short in CBOT corn futures and options hit a nine-month high of 154,043 contracts, up from 100,760 a week earlier. Recent heavy speculative selling in corn comes against the backdrop of a wildly strong U.S. export program and similarly robust U.S. ethanol grind. These factors have pared 2024-25 U.S. corn ending stock predictions significantly over the last year. However, the futures market does not seem to be reflecting a terribly tight situation. Late last week, CBOT July corn opened up a discount to December corn, not suggestive of imminent concern over supplies. Funds' building bearishness in corn as well as the newly established market carry could be hinting at the expectation that last year's U.S. corn crop was larger than the U.S. Department of Agriculture stated. The agency's June 30 stocks report could potentially validate this notion. But in the meantime, traders will need to be watching the U.S. weather forecasts, which as of Friday suggested a potential dry spell for the western Corn Belt over the next two weeks. Heat risks were relatively low, though corn and soybean crop conditions are sitting at just average levels. In the week ahead, the market will be anticipating USDA's monthly supply and demand report on Thursday, and traders expect a further contraction in old-crop U.S. corn supply. All eyes will turn toward London on Monday, where top U.S. and Chinese officials will hold talks aimed at resolving trade disputes. Pending the outcome, this could have markets starting off the week with a bang. But whether that trajectory is higher or lower is anyone's guess. Karen Braun is a market analyst for Reuters. Views expressed above are her own. (Writing by Karen Braun; Editing by Edwina Gibbs)
Reuters
08-06-2025
- Business
- Reuters
Funds' bearish sentiment on US grains and oilseeds hits nine-month high
NAPERVILLE, Illinois, June 8 (Reuters) - Speculators dug deeper into bear territory last week across U.S. grain and oilseed futures, and with this time of year known to feature plenty of uncertainties, investors must keep their eyes glued on upcoming weather forecasts for the U.S. Corn Belt. In the week ended June 3, money managers' combined net short position across U.S. grain and oilseed futures and options surpassed 400,000 contracts, up more than 90,000 on the week. That marks their most bearish collective position since early September and their most bearish open to June in eight years. Just four months ago, the combined net long topped out at 300,000 contracts. Last week's move was driven by heavier selling in corn, soybeans and soybean oil. Money managers maintained bullish CBOT soybean oil bets through the week ended June 3, but they slashed their net long futures and options contracts by 22,000 to 31,990 contracts due to negative sentiment on the U.S. biofuels front. Money managers nearly erased bullish bets in CBOT soybean futures and options, reducing their net long to 8,601 contracts from 36,697 a week earlier. Funds' bearish soymeal position remained near-record large as prices have traded sideways over the last several weeks, and they also maintained sizable net shorts across the wheat flavors. Last week's net selling in corn was primarily driven by a large wave of new gross short positions, a trend that has been present in six of the last seven weeks. As of June 3, money managers' net short in CBOT corn futures and options hit a nine-month high of 154,043 contracts, up from 100,760 a week earlier. Recent heavy speculative selling in corn comes against the backdrop of a wildly strong U.S. export program and similarly robust U.S. ethanol grind. These factors have pared 2024-25 U.S. corn ending stock predictions significantly over the last year. However, the futures market does not seem to be reflecting a terribly tight situation. Late last week, CBOT July corn opened up a discount to December corn , not suggestive of imminent concern over supplies. Funds' building bearishness in corn as well as the newly established market carry could be hinting at the expectation that last year's U.S. corn crop was larger than the U.S. Department of Agriculture stated. The agency's June 30 stocks report could potentially validate this notion. But in the meantime, traders will need to be watching the U.S. weather forecasts, which as of Friday suggested a potential dry spell for the western Corn Belt over the next two weeks. Heat risks were relatively low, though corn and soybean crop conditions are sitting at just average levels. In the week ahead, the market will be anticipating USDA's monthly supply and demand report on Thursday, and traders expect a further contraction in old-crop U.S. corn supply. All eyes will turn toward London on Monday, where top U.S. and Chinese officials will hold talks aimed at resolving trade disputes. Pending the outcome, this could have markets starting off the week with a bang. But whether that trajectory is higher or lower is anyone's guess. Karen Braun is a market analyst for Reuters. Views expressed above are her own.
