Soybeans Higher in Overnight Trading; Speculators Less Optimistic on Corn, Bean Prices
SOYBEANS RISE IN OVERNIGHT TRADING ON STRONG DEMAND, WEAKER DOLLAR
Soybeans rose in overnight trading on signs of strong demand and a weakening dollar.
Exporters on Friday reported sales of 165,000 metric tons of soybeans to China for delivery in the marketing year that started on Sept. 1, according to the U.S. Department of Agriculture. Sales in the week that ended on Nov. 10 totaled 1.42 million metric tons, a 51% increase from the prior week, the USDA said last week.
Export sales have been strong amid low prices, but have been threatened recently by a stronger dollar that cuts purchasing power for overseas buyers. The dollar weakened 0.3% overnight, giving some relief to buyers of U.S. goods.
Soybeans for January delivery rose 9 ½ cents to $10.03 ¼ a bushel on the Chicago Board of Trade. Soymeal futures for December delivery added $2.20 to $312.60 a short ton and soy oil gained 0.34 cent to 34.39 cents a pound.
Corn futures for December delivery fell ¼ cent to $3.45 ¼ a bushel in Chicago.
Wheat futures for December delivery rose a penny to $4.09 a bushel in Chicago, while Kansas City futures added 2 ¼ cents to $4.16 a bushel.
MONEY MANAGERS CUT BULLISH BETS ON BEANS, RAISE BEARISH POSITIONS ON CORN
Money managers curbed some of their optimism on soybean futures and raised bearish bets in corn after what’s expected to be a record harvest for both crops.
Speculators were net-long 96,753 soybean futures contracts, down from 125,121 a week earlier, the Commodity Futures Trading Commission said in a report on Friday. That’s the smallest such position in almost a month, CFTC data show.
Money managers were net-short 74,300 corn futures contracts, up from 13,478 contracts the prior week, the largest such position since Oct. 11, the CFTC said.
The Department of Agriculture on Nov. 9 forecast soybean production of 4.36 billion bushels on yields of 52.5 bushels an acre and corn output of 15.2 billion bushels on yields of 175.3 bushels an acre, all record highs. The value of the dollar last week hit a 13-year high and steadily rose after the U.S. election for president, curbing purchasing power for overseas buyers.
A net-long position indicates more traders are betting on higher prices, while a net-short position means more are betting futures will decline.
MORE SNOW FORECAST FOR PARTS OF MINNESOTA, WISCONSIN THIS WEEK
Another storm is aiming for the upper Midwest this week as parts of Minnesota and Wisconsin could see further snowfall, according to the National Weather Service.
As much as 5 inches of snow could fall in parts of the region starting on Tuesday, the NWS said in a report on Monday. Mixed precipitation is forecast in much of Minnesota this evening, and while accumulations are expected to be light, roads will be slick, according to the agency.
Another storm moves in starting tomorrow that will dump snow on much of Minnesota before moving into Wisconsin. The wet, heavy snow also will likely move east into the Upper Peninsula of Michigan, the NWS said.
