Grain and soybean futures were narrowly higher in overnight trading as investors square positions ahead of tomorrow’s World Agricultural Supply and Demand Estimates (WASDE) report.
The U.S. Department of Agriculture is expected by analysts to forecast domestic corn production at 14.973 billion bushels, according to a survey by Reuters.
If that comes to fruition, that would be down from the September forecast for 14.996 billion bushels.
Soybean output likely will come in at 4.415 billion bushels, the survey said. That would be up from the 4.374 billion bushels forecast in last month’s WASDE report.
Wheat futures led gainers overnight on speculation that importers will seek U.S. supplies.
Russia over the weekend set its export taxes on wheat and other agricultural products. The duties have been implemented to ensure ample domestic supply to keep food prices low.
The Canadian wheat crop is pretty much in the bin with harvest weather turning more favorable as the harvest approached.
In the U.S., the harvest rolls on. A week ago, about 29% of the corn crop was harvested, while 34% of soybeans were collected, according to the USDA.
The agency is scheduled to release its weekly crop progress report today.
Wheat futures for December delivery rose 4¢ to $7.38 a bushel overnight on the Chicago Board of Trade, while Kansas City futures added 3½¢ to $7.41 a bushel.
Corn futures for December delivery added 1¢ to $5.31½ a bushel.
Soybean futures for November delivery were up 2½¢ to $12.45½ a bushel overnight. Soymeal rose 80¢ to $319.50 a short ton, while soy oil gained 0.24¢ to 61.75¢ a pound.
INVESTORS RAISE NET-LONGS IN CORN TO FIVE-WEEK HIGH
Money managers raised their net-long positions, or bets on higher prices, in corn to the highest level in five weeks while cutting bullish positions in soybeans last week, according to the Commodity Futures Trading Commission.
Investors bumped their net-longs in corn to 243,597 contracts in the seven days that ended on Oct. 5, the CFTC said in a report. That’s up from 235,044 contracts a week earlier and the largest such position since the week that ended on Aug. 31.
In soybeans, meanwhile, speculators held a net-47,145 futures contracts last week, down from 57,142 contracts a week earlier, government data show.
Fund managers turned bullish on soft-red winter wheat, holding 4,581 futures contracts on Oct. 5, the agency said.
That’s a shift from a net-short position, or bets on lower prices, of 12,900 contracts a week earlier and the largest bullish positions since the seven days that ended on Aug. 31.
Investors also were more bullish on hard-red winter wheat, raising their net-long positions to 49,217 futures contracts last week. That’s up from 45,617 contracts a week earlier and the largest such position since March 2, the CFTC said in its report.
The weekly Commitments of Traders report from the Commodity Futures Trading Commission 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.
RAIN LEADING TO FLOODING IN PARTS OF KANSAS AND MISSOURI
Excessive rainfall in parts of eastern Kansas and western Missouri is leading to flooding in the area this morning, according to the National Weather Service.
Flood warnings and flash flood watches have been issued for the region as showers and storms continue to drop rain, the NWS said in a report early this morning.
Heavy rainfall and winds of up to 45 mph are expected to continue through the morning hours, the agency said.
Storms are expected to redevelop late tomorrow afternoon, this time in western Kansas and western Oklahoma.
“Any storm that develops will likely be severe with areas west of Interstate 135 having the greatest risk,” the NWS said. “Large hail, damaging winds and even a couple of tornadoes will be possible with the stronger storms.”
In eastern Iowa, there’s a “slight” chance for storms this afternoon and early evening, the agency said. Severe winds and potentially tornadoes are possible with the storms, should they hit today.
Source: Successful Farming and Russian President