Soybeans–
The eastern Midwest is dry and will likely miss out on rain late next week. Temperatures in the Midwest are expected to be cooler for the next two weeks, with the potential for frost. Water levels in the Mississippi River have also been affected by dryness which may disrupt exports in the weeks ahead. China continues to buy soybeans from South America, with purchases made from Argentina and Uruguay.
September Soybeans (ZSU25) settled at 1036 (+8), high of 1037, low of 1024. New crop November Soybeans (ZSX25) settled at 1054 (+6), high of 1055, low of 1042. Cash price is at 1020 (unchanged)
September Bean Meal (ZMU25) settled at 283.6 (-2.7) high of 288.0, low of 282.3
September Bean Oil (ZLU25) settled at 51.47 (-0.28) high of 51.47, low of 51.14
The September Meal to Oil ratio (52.77% Meal – 47.23% Oil)
ZSU25 Moving Averages – (1029) 5-day, (1008) 20-day, (1008) 50-day, (1018) 100-day, (1019) 200-day
ZSX25 Moving Averages – (1049) 5-day, (1029) 20-day, (1024) 50-day, (1028) 100-day, (1026) 200-day
ZMV25 Moving Averages – (286.0) 5-day, (284.8) 20-day, (281.5) 50-day, (291.7) 100-day, (302.0) 200-day
ZLV25 Moving Averages – (52.78) 5-day, (52.99) 20-day, (53.82) 50-day, (51.35) 100-day, (47.57) 200-day
The Commitments of Traders report for the week ending August 19 showed soybean Managed Money traders bought 35,273 contracts bringing their bringing their net long position to 3 contracts. Producer/Merchants sold -28,135 contracts bringing their net short position to -114,151 contracts. Non-Commercial & Non-Reportable traders net position was -4,791 contracts.
The Commitments of Traders report for the week ending August 19 showed meal Managed Money traders bought 24,070 contracts, bringing their net short position of -85,239 contracts. Producer/Merchants sold -11,089 contracts bringing their net short position to -60,857. Meal Non-Commercial & Non-Reportable traders hold a short position of -40,571 contracts.
The Commitments of Traders report for the week ending August 19 showed bean oil Managed Money traders were net long 31,342 contracts after selling -13,070 contracts. Non-Commercial & Non-Reportable traders net long position was 50,491 contracts.
CORN –
September Corn (ZCU25) settled at 398 (+12), high of 398, low of 387. New crop December Corn (ZCZ25) settled at 420 (+10). Cash price is 397 (+3)
Corn was the top gainer in the grains today, up 10 cents. There was likely some short covering taking place today ahead of the holiday weekend. Exports yesterday came within the range of estimates. Rain is expected next week for Texas, the Gulf states and eastern Nebraska. LSEG raised their estimate for Brazil’s old crop corn to 137.4 mt, up 4% from the previous estimate. Harvest in Argentina is moving along, now 97% complete. There has been some concerns of rust after the crop tour which could be part of the bounce seen today.
ZCU25 Moving Averages – (388) 5-day, (383) 20-day, (395) 50-day, (415) 100-day, (431) 200-day
ZCZ25 Moving Averages – (411) 5-day, (406) 20-day, (415) 50-day, (431) 100-day, (440) 200-day
The Commitments of Traders report for the week ending August 19 showed that corn Managed Money bought 31,464 contracts bringing their net position to -144,650 contracts. Producer/Merchants sold -25,041 contracts bringing their net position to -57,745. Non-Commercial & Non-Reportable traders net short position was -163,744 contracts.
WHEAT –
September Chicago Wheat (ZWU25) settled at 518 (+7), with a high of 518, low of 508. December Wheat (ZWZ25) settled at 534 (+5). Chicago Wheat has a cash price of 478 (+6). September KC Wheat (KEU25) settled at 492 (+6).
Wheat closed higher along with the rest of the grains. Wheat has recently struggled to pick a direction lately. Stats Canada’s all wheat estimate was 35.548 mt, compared to the pre-report estimate at 35.6 mt. Open interest fell again yesterday by nearly 11,000 contracts. It appears that funds are closing a significant portion of their short positions. The winter wheat area under drought is expected to fall next week, with rains in the forecast for the southern plains. The winter wheat area under drought was unchanged for last week at 31%, while HRS areas under drought fell 1% to 13%.
ZWU25 Moving Averages – (509) 5-day, (508) 20-day, (529) 50-day, (542) 100-day, (565) 200-day
ZWZ25 Moving Averages – (529) 5-day, (529) 20-day, (550) 50-day, (564) 100-day, (585) 200-day
The Commitments of Traders report for the week ending August 19 showed that Managed Money traders in the wheat market were net short -98,132 contracts, having increased their short position by -8,837 contracts. Producer/Merchants bought 2,615 contracts to bring their net long position to 25,061 contracts. Non-Commercial & Non-Reportable traders were net short -163,744 contracts.
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