Sunday 08 July 2012
Manipulating the soy market
Money managers expanded their net-long position in Chicago Board of Trade soybean futures, government data showed Friday, as analysts continue to warn about tightening supplies and worry about dry weather affecting the U.S. crop.
Managed funds, including hedge funds, were net long 212,956 CBOT soybean contracts in the week ended Tuesday, up 19% from the prior week, according to the Commodity Futures Trading Commission. Short positions stood at just 5,984 contracts.
The net-long position is the difference between the number of long contracts, or bets prices will rise, and short contracts, or bets prices will fall.
Funds' net-long position in soybeans has been large for much of the year, due to expectations for tightening supplies after a drought reduced South American soy production.
The recent expansion of the net long came as dry, hot weather in the Midwest raised concerns that parts of the U.S. soybean crop wouldn't be able to develop normally.
Some farmers reported having soybeans sitting in dry soil, unable to germinate without rain.
Meanwhile, money managers were net long 43,024 corn contracts, up 4% from the prior week...
Money managers expanded their net-short position in CBOT wheat futures.
They were net short 6,367 contracts, more than double their net short of 2,549 contracts the prior week.
In other markets, money managers were net long 55,046 contracts in live cattle futures...
In lean hogs, money managers roughly doubled their net-short position...
Source: Argentine Beef Packers S.A.
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