3 big things today, August 26, 2024

1. Soybean futures fall in overnight trading

Soybean futures fell in overnight trading on further predictions that the U.S. crop would be a record one.

U.S. soybean production was estimated at 4.74 billion bushels by observers at the annual Pro Farmer Crop Tour, which ended Friday, with a yield of 54.9 bushels per acre.

If successful, it would be a record result in both production and yield, according to data from the U.S. Department of Agriculture.

The U.S. Department of Agriculture (USDA) estimated soybean production earlier this month at 4.589 billion bushels with a yield of 53.2 bushels per acre – both also record figures.

According to Pro Farmer, corn production is estimated at 14.979 billion bushels, with yields at 181.1 bushels per acre.

According to the Department of Agriculture, production in mid-August was 15.147 billion bushels, with a yield of 183.1 bushels per acre.

However, prices are being driven by the extreme heat currently sweeping parts of the Midwest.

According to the National Weather Service, extreme heat warnings and precautions have been issued for today and tomorrow from Iowa east to Indiana and from Wisconsin south to Oklahoma.

Soybean futures for November delivery fell 8 cents to $9.65 a bushel overnight on the Chicago Stock Exchange. Soybean meal fell $2.70 to $301.80 a short ton and soybean oil rose 0.04 cents to 40.42 cents a pound.

Corn futures for December delivery fell 4 1/4¢ to $3.86 3/4 a bushel.

Wheat futures fell 2 1/4¢ to $5.25 3/4 a bushel, while Kansas City futures lost 3 1/2¢ to $5.31 1/2 a bushel.

2. Speculators increase net short positions in corn and beans

Investors increased their net short positions, or bets on lower prices, in corn and bean futures to their highest level in three weeks, according to data from the Commodity Futures Trading Commission.

In the seven days ending August 20, asset managers held a net 257,259 corn futures contracts, the agency said.

This is up from the previous week’s 253,047 contracts and represents the largest declining position in corn futures since July 30.

According to the CFTC, investors shorted a net 167,926 soybean futures contracts last week, up from 154,801 contracts seven days earlier and the largest such position since late July.

In wheat, hedge funds and other large investment firms were net negative by 35,378 contracts in hard red futures, up from 33,276 contracts the previous week, the government said.

Investors reduced their net short positions in soft red winter wheat to 49,932 futures contracts from 71,026 seven days earlier.

This is the smallest bearish position in soft red winter wheat since June 4, the CFTC said in its report.

The Commodity Futures Trading Commission’s weekly Commitment of Traders report shows traders’ positions in the futures markets.

The report includes information on the positions of commercial traders or those who use futures to hedge their physical assets, non-commercial traders or asset managers (also known as large speculators), and non-reporting persons or small speculators.

A net long position means more traders are betting on higher prices, while a net short position means more traders are betting on falling futures.

3. Extreme heat predicted from Wisconsin to Oklahoma

According to National Weather Service maps, extreme heat warnings and advisories have been issued for much of the Midwest stretching from northern Wisconsin to northern Oklahoma.

In eastern Iowa and some counties in northern Illinois, heat levels will range between 40 and 46 degrees Celsius tomorrow, the NWS said.

The heat warning is in effect from 11 a.m. to 8 p.m.

In central Indiana, index values ​​will reach up to 107 degrees tomorrow afternoon, the NWS said.

“Extreme heat and humidity significantly increase the risk of heat-related illness, especially among people who work or engage in outdoor activities,” the agency said.