Soybeans, grains higher overnight; investors raise net-longs in corn futures
1. SOYBEAN AND GRAIN FUTURES RISE OVERNIGHT
Soybeans and grains were higher in overnight trading as producers in Argentina evaluate crop damage from months of dry weather.
The Buenos Aires Grain Exchange said in a statement released last week that said while rains slowed deterioration of the crops, soybeans and corn still have a long way to go until harvest.
Soybean planting was all but finished at the end of last week with the highest accumulated precipitation amounts reported in the states of Cordoba, La Pampa and Buenos Aires. Corn sowing also was nearly finished.
Still, the exchange said, losses in early planted crops and due to high temperatures and lack of moisture in November, December and January negatively affected soils and crops.
Farmers took advantage of the recent rains to extend an planting additions but that amount accounts for only a small percentage of total plantings, the report said.
Demand for U.S. agricultural products also has been strong in recent days, underpinning prices.
The U.S. Department of Agriculture reported large sales of corn and soybeans to overseas buyers for six straight business days through Thursday.
Weekly sales of corn rose 20% in the week through Jan. 19, soybeans sales gained 16% and wheat sales were up 6%, the USDA said in a report on Thursday.
Soybean futures rose 18 1/4¢ to $15.27 ¾ a bushel overnight on the Chicago Board of Trade. Soymeal was up $6.80 to $480.30 a short ton, while soy oil gained 0.96¢ to 61.58¢ a pound.
Corn futures for March delivery rose 3 1/4¢ to $6.86 ¼ a bushel.
Wheat futures for March delivery were up 5 3/4¢ to $7.56 while Kansas City futures added 9 1/2¢ to $8.78 ¾ a bushel.
2. SPECULATORS RAISE NET-LONG POSITIONS IN CORN FUTURES
Investors raised their net-long positions, or bets on higher prices, in corn to the highest level in more than three months while lowering bullish bets on beans, according to data from the Commodity Futures Trading Commission.
Net-longs in corn rose to 203,506 futures contracts in the seven days that ended on Jan. 24, the CFTC said in a report. That's up from 198,865 contracts a week earlier and the largest such position since Nov. 8.
Speculators went the other way in beans, reducing their net-longs to 147,638 contracts last week, down from 168,380 contracts the previous week, the agency said.
In wheat, investors increased their net-long positions, or bets on lower prices, in soft-red winter futures to 73,802 contracts last week. That's an increase from 64,641 contracts the previous week and the largest bearish position since May 2019, according to the government.
Hedge funds and other large investment firms slightly reduced their net-short position in hard-red winter wheat to 7,826 futures contracts compared with 7,826 contracts the previous week, the CFTC said in its report.
The weekly Commitment of Traders report from the Commodity Futures Trading Commission shows trader positions in futures markets.
The report provides positions held by commercial traders, or those using futures to hedge their physical assets; noncommercial traders, or money managers (also called large speculators); and nonreportables, or small speculators.
A net-long position indicates more traders are betting on higher prices, while a net-short position means more are betting futures will decline.
3. WIND-CHILL WARNINGS, WINTER WEATHER EXPECTED IN MUCH OF CENTRAL U.S.
The weather maps are lit up this morning as winter weather is affecting much of the central U.S.
Wind-chill warnings and advisories have been issued for much of the northern Midwest while winter weather is hitting the southern Plains, according to the National Weather Service.
In North Dakota and parts of northern South Dakota, a wind-chill warning has been issued as values are expected to drop to as low as minus-40 degrees Fahrenheit this morning, the NWS said in a report.
"The dangerously cold wind chills could cause frostbite on exposed skin in as little as 10 minutes," the agency said.
In the Oklahoma and Texas panhandles, meanwhile, wind chills as low as 14 below zero are forecast for this morning. A wind-chill advisory will remain in effect until 9 a.m. local time.
Winter-storm warnings are in effect for much of northern and eastern Texas this morning, and in Oklahoma, winter-weather advisories will be in effect until noon Wednesday.
A mix of sleet and snow is expected in parts of Oklahoma and north Texas today along with wind chills falling to minus-8 degrees, the NWS said.
"Plan on slippery conditions," the agency said. "The cold wind chills could result in hypothermia if precautions are not taken."
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