"Fund Buying" - Money Managers Reduce Net Corn Short by 60%

Grain Markets and Other Stuff

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Here’s the latest update on the agricultural market and related developments! 🌾📊
📉 Funds Reduce Short Positions
"The Funds" have significantly decreased their net short position in the corn market by 60% since July. As of September 17th, large money managers were short only 144k contracts of corn, down from a record 356k in July. The Dec24 corn contract rallied only 31 cents per bushel from its late August low of $3.85 to a peak of $4.16. Fund traders are also covering shorts in the soybean and wheat markets, though farmer selling has limited price movement.
🌪️ Storm Developing in the Caribbean
A storm in the western Caribbean is expected to develop into a hurricane this week, bringing heavy rains to the southeastern US and parts of the southern and eastern Corn Belt. However, the western Corn Belt and US Plains are likely to remain dry. Corn and soybean harvests are set to progress this week, despite the potential rains, though river conditions are projected to remain unchanged.
🇧🇷 Brazilian Soybean Planting Delayed
Brazil's soybean planting is lagging behind last year's pace, with only 0.5% of the estimated acreage planted compared to 1.6% last year. Low soil moisture due to hot and dry conditions has hindered planting, though some models predict rain in Mato Grosso later this week.
🚗 US Proposes Ban on Chinese and Russian Car Tech
The US is proposing a ban on smart car technology from China and Russia, which includes autonomous driving systems and vehicle communication. This move aims to prevent potential security risks. The ban is expected to take effect in January, allowing US automakers to develop their own supply chains for connected vehicles.
🐄 Cattle on Feed Report
Friday's Cattle on Feed report was neutral for the market. As of September 1, cattle on feed were reported at 101% of year-ago levels, aligning with expectations. August placements were steady at 99% year-over-year, while marketings came in at 96% of last year's levels.
🌱 Flash Sale of Soybeans
USDA reported a flash sale of 121,000mt (4 million bushels) of soybeans to China for the 2024/2025 marketing year. Current US soybean export commitments are the second lowest in the past decade.
Stay tuned for more updates! 🌟