In this file:
· Hedge funds record short on grains
· China Implementing New Import Requirements on U.S. Soybeans
· Soybean Fireworks Expected In Early January USDA Report
Hedge funds record short on grains
By Mark Dorenkamp, Brownfield
January 2, 2018
Hedge funds hold record short positions on grains going into the new year and a market analyst says that could help spark a rally.
Mark Schultz is with Northstar Commodity.
“When you have a rather sizable short position in corn, soybeans, and wheat; a record level when you add those three together, it sets the stage that if you could get some sort of a little weather issue, you could get into some short covering and see a market that starts to rally.”
He tells Brownfield the rally in wheat futures Tuesday was weather driven and provided spillover support to corn and soybeans.
“But we’re a long ways away from creating something that’s any type of significant weather issue. But any time the funds are that heavily short, (there’s) an opportunity to at least see something give you a rally back to the upside.”
Net short positions have steadily increased to...
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China Implementing New Import Requirements on U.S. Soybeans
Source: NAFB News Service
via Hoosier Ag Today - Jan 1, 2018
U.S. soybean exports will undergo a new procedure to meet new phytosanitary requirements for shipping to China, starting on January 1. The U.S. Animal and Plant Health Inspection Service says the new procedure applies to both bulk and container shipments of raw and unprocessed American soybeans to China. APHIS says compliance with the new rules will be necessary to maintain uninterrupted shipments to China. Greg Ibach , USDA Undersecretary for Marketing and Regulatory Programs, issued a statement saying that the agency worked closely with China and U.S. soybean industry representatives in coming up with an acceptable procedure.
Earlier this year, China said the U.S. soybean shipments that were coming into the country contained too much foreign material in each load, including dirt and weed seeds. Chinese officials said the foreign material exceeded their standards and some of the weed seeds were of possible quarantine concern. Under the new procedure...
Soybean Fireworks Expected In Early January USDA Report
The soybean export pace is troubling.
By Rich Nelson, Allendale Inc.
via Successful Farming/Agriculture.com - 12/29/2017
Soybeans produced an end-of-the-year bounce today, as a small round of profit taking supported the market.
The front month January contract ended up settling at $9.51¾. This was down 44¾¢ from where the January 17 contract settled on the last trading day of last year.
It should be noted that the current year’s ending stock number is projected to come in at 445 million bushels with stocks to use coming in at 10.3%. This year’s stocks numbers are lower than last year on the December USDA report when stocks were projected to come in at 480 million with stocks to use at 11.7%.
In theory, the lower stocks-to-use this year should translate into higher prices, but that isn’t currently happening. The market is not trading USDA’s stock numbers because we all suspect they will be raised due to the poor exports the U.S. is currently experiencing (more about this below). Many are discussing +500 million bushels stocks numbers due to poor exports. Also, some would suggest last year’s winter rally in beans was due to SA weather concerns.
Argentina is currently experiencing some dryness issues but many in the trade are taking up the potential for another record crop in Brazil which will offset much of the Argentina losses.
Today’s soybean export sales totaled 1,055,984 metric tonnes (974,696 2017/18). This was within the 800,000 to 1,500,000 the trade was expecting. The USDA’s whole-year goal for exports is 2.225 billion bushels. That would be 2% over last year’s record if achieved.
Current sales, at 1.489 billion, are running 14% under last year at this time...