3 Big Things Today, July 22, 2024

1. Soybean, grain futures surge overnight

Soybean and grain futures surged in overnight trading on technical buying and amid some global weather concerns.

Futures may be oversold, leading investors to liquidate their net-short positions, or bets on lower prices, and buy back futures contracts. 

Giving prices a boost overnight are signs of demand for U.S. agricultural products. 

Exporters sold 105,000 metric tons of soy meal for delivery in the 2024–2025 marketing year to an unidentified country, the USDA said in a report last week. 

The USDA also said exporters sold 510,000 metric tons of soybeans to unidentified destinations to be delivered in the next marketing year. A separate sale of 150,000 metric tons of soy meal was also announced. 

Commodity Weather Group said in a note to clients that parts of Saskatchewan and Alberta, both large wheat- and canola-growing provinces in Canada, may slip drier and are at risk for crop losses. 

Still, ample rain has fallen in parts of the U.S. Corn Belt — too much in some areas, as flooding is ongoing — that has kept crops hydrated. 

Soybean futures for November delivery jumped 19½¢ to $10.55½ a bushel overnight on the Chicago Board of Trade (CBOT). Soymeal added $6.20 to $313.70 a short ton, and soy oil was up 0.57¢ to 44.54¢ a pound. 

Corn futures for December delivery gained 6½¢ to $4.11¼ a bushel.

Wheat futures for September delivery rose 4¢ to $5.46¾ a bushel, while Kansas City futures added 1¾¢ to $5.71¾ a bushel. 

2. Speculators curb bearish bets on corn

Investors reduced their net-short positions, or bets on lower prices, in corn futures in the seven days that ended July 16, according to the Commodity Futures Trading Commission (CFTC).

Speculators held a net 352,772 futures contracts in corn, down from 356,415 contracts a week earlier, the agency said. 

Money managers raised their bearish bets on soybean futures to 183,145 futures contracts, CFTC said. That’s up from 162,803 contracts the week prior. 

In wheat, investors were more bearish week to week. 

Hedge fund managers and other large investment firms held 72,831 futures contracts in soft red winter wheat, up from 68,692 contracts seven days earlier. 

Investors held 44,624 hard red winter wheat contracts, up from 40,893 contracts the previous week, CFTC said in its report. 

The weekly Commitment of Traders report from the CFTC 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. Storms forecast for parts of North Dakota, Minnesota

Isolated thunderstorms are expected in parts of eastern North Dakota and western Minnesota this afternoon, according to the National Weather Service (NWS). 

Small hail and gusty winds are forecast for the area, the agency said. 

Storms also are expected in parts of northern South Dakota that could produce heavy rainfall and small hail, NWS said. Some of those storms could linger through the evening into the early overnight hours. 

In central Kansas, meanwhile, some isolated storms are forecast, though severe weather isn’t expected, NWS said.