General: Private exporters announce the second-largest single corn sale on record. Most wheat contracts were also up more than 2%. Soybean gains were a bit more muted, but prices still closed around 1% higher.
The Commitment of Traders report, with data as of 1/26, had bean specs extending their net long with little change to their OI on the week. From 1/19 to 1/26 spec traders covered 3,304 shorts and added 1,388 new longs for a net long of 156,590 contracts. Managed money was 3,041 contracts less net long in soymeal on the week. And funds were net buyers for 16,635 contracts of BO leaving them 107,334 contracts net long. South Korea purchased 60,000 MT of optional origin soymeal.
The national average corn basis from cmdtyView weakened a nickel during the rally to minus 21.75 cents. USDA reported another large corn sale to China this morning. The 2.108 MMT old crop sale was the second largest daily corn sale on record. The week’s total bookings covered by the daily reporting system are 5.848 MMT (230 million bushels!) for China and 316,400 MT for unknown. Adding this week’s daily announcements to previously released Export Sales data would leave China with 17.693 MMT of U.S. old crop corn commitments. CFTC’s weekly data releasee showed managed money funds extended their net long by 14,734 contracts to 364,229 as of Tuesday night. Commercials continued to unwind their record net short, lowering it 10,855 contracts on a 12,896 increase to longs. On net, commercials were 753,073 contracts net short on 1/26.
HRW’s monthly change was a net 34.25 cents/bushel. The SRW/HRW premium weakened 12 1/4 cents over the month, but the new crop July spread dropped 17 1/2 cents to 3 1/2 cents. The wheat/corn narrowed fell 29 cents (HRW-Corn) over the course of the month. The CoT report showed managed money was 21,275 contracts net long in SRW as of 1/26. That was a 657 contract increase on the week with lighter spec OI. HRW speculative traders were 2,146 contracts more net long to 60,239 contracts on new buying interest. Managed money also extended their net long in HRS futures and options, up 1,337 contracts to 14,659. Taiwan purchased 85,340 MT of U.S. wheat in a tender. Jordan is tendering for 120,000 MT of wheat.
PRICE MOVEMENT ON CBOT JAN 29