Funds’ CBOT corn shopping for vastly underwhelms after low U.S. acreage -Braun

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NAPERVILLE — Chicago-traded corn futures surged after U.S. farmers reported they might plant considerably fewer acres this 12 months than analysts predicted, however that didn’t have speculators including rather more size within the subsequent days.

Buyers have been bullish towards corn since September 2020, and their current optimism has rivaled a few of their strongest inside that interval. Justification to take care of these positions got here on March 31, when the U.S. authorities’s acreage survey unexpectedly confirmed 2022 corn plantings would fall 4% on the 12 months.

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Most-active CBOT corn futures jumped 4.6% within the week ended April 5 and new-crop December surged 8.2%. Commodity funds have been predicted to have purchased almost 50,000 corn futures within the interval.

Nonetheless, knowledge from the U.S. Commodity Futures Buying and selling Fee on Friday confirmed the managed cash web lengthy at 362,306 corn futures and choices contracts as of April 5, up simply 7,702 from every week earlier.

A few of that purchasing was discovered on the industrial facet of the market, as prospects for tight U.S. corn provides by way of mid-2023 seemingly spooked end-users. Index funds additionally elevated complete corn positions by 4%, reaching a nine-month excessive.

Close by and deferred corn added greater than 1% during the last three periods, with new-crop futures on Friday notching a contract excessive of $7.17-3/4 per bushel. Most-active corn set a one-month high on Friday of $7.73.

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The U.S. Division of Agriculture on Friday maintained its projection for 2021-22 U.S. corn ending shares, although Brazil’s corn crop got here in bigger than anticipated and Chinese language imports have been diminished.

USDA final Monday introduced China bought its first cargoes of U.S. corn in 10 months, each old- and new-crop, which helped assist costs. Moreover, current and upcoming cooler U.S. temperatures might not give farmers an early begin to planting.

SOYBEANS

Reverse to corn, U.S. soybean plantings have been pegged effectively above market expectations at a document 91 million acres, up 4% on the 12 months. CBOT soybeans reacted poorly to the information at first, however close by and deferred futures on Friday traded above the end-of-March ranges, principally erasing the acreage-rooted promoting.

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By way of April 5, cash managers elevated their web lengthy in CBOT soybean futures and choices to 163,655 contracts from 156,273 every week earlier. Gentle promoting had been assumed.

Soybean promoting was distinguished amongst different reportable speculators that week. That group of merchants axed almost 8,500 contracts from their web lengthy, their largest promoting week since June 2021.

On Friday, most-active soybeans reached a nine-session excessive of $16.89-3/4 per bushel, and November futures hit a 10-session high of $14.97-1/2. Funds have been seen including some notable size late final week.

Cash managers’ soy product views have been little or no modified by way of April 5. Their soybean meal web lengthy inched over 100,000 futures and choices contracts, and their soyoil lengthy fell by lower than 2,000 contracts to 76,750.

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Most-active soybeans and soyoil rose greater than 3.5% between Wednesday and Friday, however soymeal rose fractionally.

WHEAT

Much like corn, traders have been seen including appreciable wheat size by way of April 5 and most-active CBOT futures rose 3%. However cash managers’ web lengthy fell to 13,959 futures and choices contracts, down almost 5,500 on the week.

Commodity index merchants lightened up on their CBOT wheat positions by 3%, and their complete variety of contracts fell to the bottom ranges because the days earlier than Russia invaded Ukraine, each high wheat exporters.

July Kansas Metropolis wheat shot up almost 6% by way of April 5 on the continued battle in Ukraine and janky situations for the U.S. crop. Cash managers negligibly trimmed their web lengthy, which fell to 45,029 futures and choices contracts.

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U.S. spring wheat plantings are unexpectedly set to fall from final 12 months, and drought situations within the Northern Plains have some analysts involved one other poor harvest could possibly be on the best way. Minneapolis futures rose 6.6% by way of April 5 and one other 1.3% within the subsequent three periods. The contract reached a one-month excessive of $11.28-3/4 per bushel on Friday.

Cash managers as of April 5 established their most bullish Minneapolis view since 2010 at 18,255 futures and choices contracts. That was a rise of 4,250 contracts on the week, probably the most for any week since October 2020.

Okay.C. wheat rose greater than 2% between Wednesday and Friday and CBOT added 1.2%. Karen Braun is a market analyst for Reuters. Views expressed above are her personal.

(Modifying by Matthew Lewis)