3 Big Things Today, February 1, 2021

Corn, Soybeans Higher Overnight; Investors Boost Bullish Bets on Corn, Beans.

1. Corn, Soybeans Higher in Overnight Trading on Demand

Corn and soybeans were higher in overnight trading on continued signs of strong demand.

Exporters sold 2.11 million metric tons of corn to China for delivery in the 2020-2021 marketing year, the U.S. Department of Agriculture said on Friday.

Soybean sales of 132,000 metric tons to China also were reported.

The USDA issued sales reports for U.S. corn and soybeans four times last week, indicating strong demand from overseas buyers.

Corn exports in the marketing year that ends on Aug. 31 are pegged at 2.55 billion bushels, up from 1.78 billion a year earlier, according to the agency.

Soybean shipments are forecast at 2.23 billion bushels this year, up from 1.68 billion a year earlier, the USDA said.

Corn for March delivery rose 7?¢ to $5.54? a bushel overnight on the Chicago Board of Trade. ?

Soybean futures for March delivery gained 6¢ to $13.76 a bushel. Soymeal rose $1.70 to $432.70 a short ton, and soy oil fell 0.08¢ to 44.54¢ a pound.

Wheat futures for March delivery added 1¢ to $6.64 a bushel, while Kansas City futures fell 1?¢ to $6.36? a bushel.

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2. Speculative Investors Boost Bullish Bets on Corn and Beans

Money managers raised their net-long positions, or bets on higher prices, in corn and soybeans last week, according to the Commodity Futures Trading Commission.

Investors held a net-long positions of 341,178 corn futures in the seven days that ended on Jan. 26, the CFTC said in a report.?

That’s up from 336,087 the previous week.

Speculators were net long by 148,111 soybean futures contracts as of last week, up from 137,496 contracts a week earlier, the government said.

Investors have been bullish on corn and beans for several weeks amid strong global demand for U.S. supplies.

In wheat, speculators held a net-long position of 14,400 soft-red winter futures, up from 13,672 contracts seven days earlier, the CFTC said.

Money managers were net long by 60,239 hard-red winter wheat futures contracts as of Jan. 26, up from 58,093 contracts the prior week, the agency said in its report. ?

The weekly Commitments 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. Winter Weather Advisory Issued in Indiana, Ohio as Snow Forecast

A winter weather advisory is in effect in parts of southern Indiana and Ohio while the northeast is getting slammed by heavy snow, according to the National Weather Service.

In parts of southern Indiana and Ohio, into Kentucky and several other states, snow accumulations of 1 to 2 inches are expected, though local amounts could be higher, the NWS said in a report early this morning. ?

A winter weather advisory remains in effect until 1 p.m. Eastern.

In New England, heavy snow is forecast with up to 8 inches in some parts of central Pennsylvania, the agency said. Travel is expected to be “very difficult.”

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