By Karen Braun
NAPERVILLE, ILLINOIS (Reuters) -Speculators held on to bullish bets in Chicago corn and soybeans final week in hopes that U.S. talks with buying and selling companions would possibly progress, probably stimulating U.S. grain exports.
U.S. farmers are off to an environment friendly begin on spring planting and crops in South America have good prospects, neither of that are significantly value supportive.
However market uncertainty stays sufficiently elevated as nothing concrete has emerged but on the U.S. commerce negotiation entrance.
Cash managers have held a web lengthy place in CBOT corn futures and choices since November. Within the week ended April 22, they trimmed that place to 112,805 contracts from 124,573 within the earlier week.
The transfer was fascinating as a result of it included the biggest weekly addition of gross brief positions in six months. Nevertheless, a large variety of gross longs additionally entered the image, suggesting combined sentiment.
Each longs and shorts had been additionally added in soybeans, however bulls had the sting. Cash managers elevated their web lengthy in CBOT soybeans by about 5,000 contracts to 31,067 futures and choices contracts.
CBOT July soybean futures had been unchanged within the week ended April 22. They climbed 1.3% during the last three periods, on Friday reaching the most-active contract’s highest value since early February.
U.S. soybeans may very well be a high casualty of a U.S.-China commerce battle as they’re the main U.S. export to China of any variety. The 2 nations’ escalating tariff battle has been seen as probably favorable to the soybean market because the extraordinarily steep charges might drive a deal sooner moderately than later.
Nevertheless, Beijing on Friday denied talks had been actively occurring, going in opposition to U.S. claims.
In the meantime, studies circulated on Thursday that Brazil will export extra soybeans to China in 2025 amid the U.S.-China battle. However Brazil just lately harvested a report soy crop, which means this was more likely to occur anyway, commerce battle or not.
Corn and soybean bulls acquired a nod final week from Japan, which can be contemplating upping its U.S. corn and soybean imports as a part of commerce negotiations. Japan is the second greatest U.S. corn and fifth greatest U.S. soybean importer.
SOY PRODUCTS AND WHEAT
Cash managers within the week ended April 22 elevated their web lengthy in CBOT soybean oil by about 10,000 contracts to 50,899 futures and choices contracts.
Uncertainty about U.S. biofuel coverage has prompted investor sentiment to swing from bullish to bearish a number of instances inside the previous couple of months, although wholesome world soybean oil demand and strong U.S. exports have just lately been supportive.