Managed Money Has Largest Short Position In Corn, Beans In 6 Months
According to Friday’s Commitment of Traders report from the CFTC, money managers have increased their net short position in corn to 165,965 contracts. This is the largest short position since Jan 20. Money managers’ net short position in soybeans has grown to 72,009 contracts and is also the lowest since the week ending on Jan 20. Speculators have continued to sell amid the Trade War with China and very strong crop conditions in the US. Managed money has turned bullish SRW and has regained a net long position of 566 contracts, compared to last week’s net short of 1,266 lots. Speculators have decreased their position but remain net long HRW by 16,274 contracts.
Export Sales Announcements
Private exporters reported to the U.S. Department of Agriculture cancellations of optional origin sales totaling 165,000 metric tons of soybeans for delivery to China during the 2018/2019 marketing year. An optional origin contract provides that the origin of the commodity may be the U.S. or one or more other exporting countries.
Chinese Soybean Crusher Declares Bankruptcy
Shandong Sunrise Group, once one of the largest soybean importers in China, has filed for bankruptcy. This follows decreased demand for bean meal from the Chinese pork industry and the company is reported by Shanghai JC Intelligence to have been losing around $7.40 per metric tonne of soybeans crushed. Back in 2014, Shandong Sunrise accounted for nearly 12% of all soybeans imported into China.
Southern Midwest Heat Wave Wanes, Rains to Follow
Parts of S Kansas, S Missouri, Oklahoma, and Arkansas that saw heat indexes at nearly 115 degrees are expected to cool to the mid 90s this week. Kansas and Missouri have not seen significant moisture in weeks but NOAA shows both states receiving several inches of rain over the next 10 days, beginning as early as Thursday in W Kansas.
The risk of trading futures, hedging, and speculating can be substantial. FBN BR LLC (NFA ID: 0508695)
