In the week ending July 16, speculators set a new record for net short positions in Chicago-traded soybeans due to strong U.S. crop prospects and an oversupply in China, causing futures to sink to near four-year lows. Money managers increased their net short in CBOT soybean futures and options to 185,750 contracts, driven by new gross shorts. Since late May, funds have sold over 170,000 soy contracts, akin to 850 million bushels, a selling spree only seen during escalated periods like the 2018 U.S.-China trade war. CBOT soybeans dropped over 3% in the week, settling 25% lower than a year ago, and November futures have fallen 14% since May.
Declining feed demand in China has heavily impacted soybean meal, with both Chinese and U.S. futures down 8% in three weeks. Money managers drastically reduced their net long in CBOT soymeal to 26,926 contracts from 60,693, marking their largest weekly sell-off. In early July, money managers commenced a record net-buying streak in CBOT soybean oil, but trimmed their net short last week despite futures falling 3%.
Most-active soybeans and soymeal ticked down slightly, closing at $10.36 per bushel and $307.50 per short ton, respectively, the latter an all-time low for the December contract. Even a significant U.S. soybean export sale couldn’t halt the bearish momentum. Similarly, CBOT December corn futures remained near their lows with money managers slightly reducing their net short positions.
CBOT September wheat tumbled over 7%, hitting a new contract low, with money managers expanding their net short positions. Crop estimates for Russia, a leading wheat exporter, remain lower, and poor weather in France has further affected wheat conditions. Despite these factors, late-week CBOT wheat futures rose 2.3%, while December corn slid 1%.
Original Story https://www.livemint.com/news/time-bearish-soy-view-and-stage-record-meal-sell-off-braun-11721595782387.html
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