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NAPERVILLE — Speculators final week ended their document promoting streak in Chicago-traded corn, however they posted a second consecutive week of heavier promoting in soybean meal and, to a lesser extent, soybeans.
Nevertheless, commodity funds could have accelerated promoting throughout the soy complicated late final week as costs plummeted on large buying and selling volumes, a possible signal that bullish soy traders had been lastly exiting lengthy positions as they’d in corn.
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That was very true Wednesday and Thursday, however the latest place knowledge solely covers by means of Tuesday.
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The U.S. Commodity Futures Buying and selling Fee on Friday printed its Commitments of Merchants (CoT) report for the week ended March 21, its first usually timed CoT launch in eight weeks. The info, which was lagging after a ransomware assault on a third-party supplier, is now totally updated.
Within the week ended March 21, cash managers diminished their web lengthy place in CBOT soybean futures and choices to 110,786 contracts from 127,661 every week earlier. That diploma of promoting was solely barely greater than the commerce had anticipated, and the ensuing web lengthy was a 15-week low.
In soybean meal futures and choices, cash managers lower their web lengthy to a 14-week low of 115,214 contracts from 133,970 within the prior week, each traditionally giant positions. Funds’ strikes in beans and meal within the newest two weeks had been pushed by reductions in gross longs.
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Cash managers by means of March 21 prolonged their web brief in CBOT soybean oil futures and choices to five,718 contracts from 1,189 every week earlier, and their new stance is essentially the most bearish since Might 2020. New gross shorts have dominated in oil for the newest three weeks.
Within the week ended March 21, most-active CBOT soybean futures fell 1.8%, new-crop November soybeans shed 3.2%, soymeal misplaced 4.3% however soyoil added 0.1%.
Within the three periods since, most-active soybeans fell 2.6%, November beans fell 1.8%, soymeal dropped 3.4% and soyoil declined 5.3%. By means of March 23, November soybeans had closed decrease in 13 consecutive periods, the longest such streak in a minimum of 50 years, however the run was damaged Friday.
Commerce estimates name for strong promoting Wednesday by means of Friday in beans and oil, however estimates had been additionally critically underdone when funds staged their document weekly sell-off in corn in late February.
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The weekly information for heaviest managed cash promoting in futures and choices are as follows: soybeans 61,393 contracts (November 2019), soymeal 29,801 contracts (March 2017) and soyoil 44,913 (October 2017).
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Cash managers had been modest patrons of CBOT corn futures and choices within the week ended March 21 after promoting practically 300,000 contracts over the earlier 4 weeks. They diminished their web brief to 41,896 contracts from 54,134 every week prior, which had been their first bearish stance since August 2020.
In CBOT wheat, cash managers lower their web brief for a second consecutive week, to 86,500 futures and choices contracts from 95,257 every week earlier. Gross shorts had been coated in each corn and wheat final week, however new longs had been extra outstanding in corn.
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Within the week ended March 21, most-active CBOT corn futures rose 1.5% however CBOT wheat fell 1.9%. Between Wednesday and Friday, corn added one other 2.1% and wheat rose 0.8%.
Wheat and corn strengthened considerably on Friday as studies swirled that Russia would possibly halt wheat exports as a result of world costs have plunged, hurting native producers. It was later reported Russia wouldn’t halt exports, however somewhat set a minimal gross sales value, which might not directly restrict exports.
China has additionally been available in the market for U.S. corn, having earlier this month made its largest weekly buy in two years.
Cash managers by means of March 21 trimmed their modest web shorts in Kansas Metropolis and Minneapolis wheat futures and choices, however they established their most bearish place in ICE cotton since April 2020 with a web wanting 24,255 contracts.
Additionally they flipped again to a web brief in CME lean hog futures and choices with heavier promoting on the week, and the web wanting 16,575 contracts is funds’ largest since July 2007. Karen Braun is a market analyst for Reuters. Views expressed above are her personal.
(Modifying by Cynthia Osterman)
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