Brazilian Soybean Planting Zooms Ahead to a Record 34% Complete
On Friday, Brazilian consultant AgRural pegged soybean planting as 34% complete in Brazil, compared to 20% this time last year and the 5 year average of 18%. Timely rains in Mato Grosso, the largest soy producing state in Brazil, has lead to beans being 62% planted in the state, well above this time last year at 27% and the 5 year average of 26%. Planting was delayed considerably last year as much of the Brazilian growing area was suffering from drought conditions. Brazilian soybeans remain in high demand from China following the Trade War with the US and a rapidly planted soybean crop will allow for increased export to occur weeks ahead of schedule. Also, the faster soybeans are planted, the faster the second crop corn, or safrinha, can be planted, which represents over two-thirds of Brazilian corn production.
Speculators Enter Into First Net-Long Position for Corn Since June, Cut Down on Soybean Shorts
According to the Commitment of Traders report, money managers turned bullish on corn, adding 60,657 long positions during the week ending on Oct 16 to become 21,258 contracts net long. This is the first time speculators have been bullish corn since June 5. Managed money also cut down their net short position for soybeans, cutting 8,579 to 31,112 contracts net short. Heavy rains over the Midwest during harvest has lead to quality and yield questions for both soybeans and corn. Money managers reduced their net short position in Chicago SRW by 1,846 to 16,252 contracts. They also increased their net long position in KC HRW by 2,019 to 22,291 contracts.
Cold Temps Remain in Ohio River Valley as Parts of Iowa Continue to Deal with Flooding
Areas of Ohio, Kentucky, and Tennessee, as well as S Indiana and S Illinois, have had freeze warnings put in place by the National Weather Service.
Overnight temperatures could fall as low as 27 degrees F. The NWS has also issues frost advisories in the western and southern most areas listed above. The Mississippi River and smaller tributaries in E Iowa and W Illinois remain flooded. The 5 day forecast shows little chance of precipitation in the area, giving fields a chance to dry out.
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