Funds pile back into CBOT soybeans after supportive US data -Braun

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NAPERVILLE — Speculators spent the second half of March reducing long positions in Chicago-traded soybeans after having established bearish corn views for the first time since 2020.

But they were big buyers of beans in the latest week as bullish U.S. data followed shortly after the recent sell-off. Funds also ventured back into bull territory on corn.

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In its closely watched March 31 reports, the U.S. Department of Agriculture revealed smaller-than-expected U.S. corn and soybean stocks and pegged U.S. soybean plantings below trade ideas.

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In the week ended April 4, most-active CBOT soybean futures jumped 3.4%, finishing 8% above the late March low. Most-active corn rose 1% during the week, up 7.7% from its recent low set earlier in March, though December corn fell 2%.

Money managers in the week ended April 4 increased their net long position in CBOT soybean futures and options to 145,964 contracts from 99,522 a week earlier. That marked funds’ biggest net buying week in beans since September 2020 and their largest weekly addition of gross longs since that same date.

Short covering in soybeans was the largest for any week since May 2022 and accounted for a third of the week’s move.

Through April 4, money managers flipped to a net long in CBOT corn futures and options of 21,547 contracts versus a net short of 13,288 in the prior week. Almost two-thirds of that move owed to short covering, the largest weekly round since September 2020.

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Other reportable traders through April 4 lopped off more than 16,000 gross longs from their net long position in corn, the most since July 2022. Their resulting net long of 31,158 futures and options contracts is also the lightest since July.

Most-active CBOT soymeal was fractionally lower through April 4 though soyoil gained more than 1%. Funds shaved 394 contracts off their meal net long, which fell to 95,735 futures and options contracts, still heavily bullish compared with history but the least so since November.

Funds trimmed their net short in CBOT soyoil futures and options through April 4 to 10,585 contracts from 12,459 the week prior.

In the week ended April 4, most-active CBOT wheat fell 1.2% while Kansas City wheat was unchanged. Money managers cut their sizable net short in CBOT wheat to 87,083 futures and options contracts from 89,873 a week earlier.

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During the same period, funds boosted their net long in K.C. wheat futures and options to 7,613 contracts, their most bullish since late February and up from a net long of just 237 a week earlier.

CBOT markets were closed Friday, but on Thursday, Kansas City wheat futures ended $1.89 per bushel above Chicago wheat, K.C.’s largest ever premium versus Chicago. Between Wednesday and Thursday, CBOT wheat dropped 2.3% and K.C. wheat fell 0.9%.

Over those same two sessions, most-active corn and soybeans both fell 1.6%, meal was down 0.7% and soyoil shed 2.2%. New-crop corn and soybeans lost 0.6% and 0.8%, respectively.

This week, traders will be watching USDA’s monthly update on Tuesday, the early stages of U.S. spring planting, and the likely record volumes of soybeans flooding out of Brazil. Karen Braun is a market analyst for Reuters. Views expressed above are her own.

(Editing by Josie Kao)