3 Big Things Today, January 28

Soybeans Lower in Overnight Trading; Money Managers Most Bullish HRW Since June 2014. 

1. Soybeans Decline as Weather Improves in Argentina

Soybeans were lower in overnight trading as less precipitation in Argentina will likely allow growers to finish planting in the world’s third-largest producer of the oilseeds.

Showers will continue in eastern parts of the South American country for the next six to 10 days, but “continued drier weather in central areas this week will allow wetness there to ease further,” said Donald Keeney, a senior ag meteorologist at MDA Information Services.

Excessive rainfall has kept planting behind its normal pace in Argentina. Growers should be able to seed fields they were unable to plant due to the wet weather.

Corn and Kansas City wheat also were lower, while Chicago wheat was little changed.

Soybean futures for March delivery fell 8¢ to $10.59½ a bushel overnight on the Chicago Board of Trade. Soy meal futures lost $3.50 to $345.20 a short ton, and soy oil declined 0.04¢ to 35.11¢ a pound.
Corn futures fell a penny to $3.68¾ a bushel overnight.

Wheat for March delivery ¼¢ to $4.28 a bushel in Chicago, while Kansas City futures dropped 2½¢ to $4.40½ a bushel.
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2. Money Managers Push Hard Red Winter Net Longs to Highest Since June 2014

Money managers continue to get more bullish on hard red winter wheat grown in the Southern Plains, pushing their net-long positions to the highest level in more than two years.

Speculators were net-long 26,451 hard red winter wheat contracts last week, the biggest such position since June 2014, according to data from the Commodity Futures Trading Commission.

The bullishness in hard red winter contracts comes as growers slash acres. Overall winter wheat area dropped 10% to 32.4 million acres during planting last year, the Department of Agriculture said in a report earlier this month, the second-lowest ever and the least since 1909.

Sowing of hard red winter wheat, used to make bread and highly sought by overseas buyers, declined by 12%, and soft red winter seeding fell 5.6%, according to the USDA. Growers in Nebraska and Utah planted record-low amounts of wheat, the agency said.

Money managers were actually more bearish soft red winter wheat last week, though only slightly. The number of net-short positions, or bets against higher prices, rose to 97,245 contracts from 96,583 the prior week, according to the CFTC. 
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3. Winter Storm Watch Goes Into Effect Early Tuesday as Snow, Wind Expected

A winter storm watch will take effect starting early Tuesday for much of northern Nebraska, southern South Dakota, southern Minnesota, and northern Iowa.

The storm is expected to move into the region overnight, bringing as much as 8 inches of snow, according to the National Weather Service. There is a potential for higher amounts in some areas, the agency said.

Winds also may be a problem, as gusts up to 30 mph are forecast. The storm will make driving difficult as roads will become snowpacked quickly, the NWS said.  

source: successful farming