By Karen Braun
Naperville, Illinois (Reuters) – Speculators have kept bullish bets in Chicago corn and soy last week in the hope that the United States could speak of business partners could progress, potentially stimulating US cereal exports.
American farmers have gone effective in spring planting and cultures in South America have good prospects, none of which particularly supports prices.
But the uncertainty of the market remains sufficiently high because nothing concrete has yet emerged on the front of American commercial negotiation.
Fund managers have a clear long position in Cbot Corn Futures and Options since November. During the week ended on April 22, they reduced this position to 112,805 contracts of 124,573 the previous week.
This decision was interesting because it included the greatest weekly addition of short gross positions in six months. However, a large number of long gross has also entered the image, suggesting a mixed feeling.
Longs and shorts were also added in soybeans, but the bulls had the advantage. Fund managers have increased their net in the CBOT soybeans for a long time of around 5,000 contracts to 31,067 term contracts and options.
The term contracts on the Soy of the July Cbot were unchanged during the closed week on April 22. They climbed 1.3% in the last three sessions, reaching Friday the most active price of the contract since early February.
American soybeans could be the first victim of an American-Chinese trade war because they are the main American exports to China of all kinds. The growing tariff battle of the two countries was considered potentially favorable to the soy market, as extremely high rates could force an agreement as soon as possible.
However, on Friday, Beijing denied that discussions were actively occurring, going against American complaints.
Meanwhile, reports circulated Thursday that Brazil will export more soy to China in 2025 in the middle of the American-chin conflict. But Brazil recently collected a record harvest of soybeans, which means that this was likely to happen anyway, the trade war or not.
The corn and soy bulls obtained a sign of Japan last week, which could consider carrying out its American imports of corn and soy in the context of commercial negotiations. Japan is the second largest American corn and the fifth largest importer of American soybeans.
Soy and wheat products
The fund managers of the week completed on April 22 have increased their net in CObot soy oil for approximately 10,000 contracts to 50,899 term contracts and options.
Uncertainty about the American biofuels policy has passed the feeling of lowering upwards in recent times in recent months, although global demand for healthy soy oil and robust American exports have recently been favorable.
