USA: Funds build record bearish soymeal bets as futures hit multi-year lows

Published Dec 24, 2024

Tridge summary

Record short positions in soybean meal and weak positions in soybeans, soybean oil, and wheat futures by money managers reflect ample global supplies of these crops in 2024. Specifically, money managers have set a new record with a net short position of 88,971 contracts in CBOT soybean meal futures and options, and a net short position of 76,252 contracts in CBOT soybean futures, marking the most bearish mid-December view in five years. Meanwhile, U.S. corn supplies are lower than expected due to strong crops and demand, leading to a more bullish stance from money managers, with a net long in CBOT corn futures and options reducing but still being the most bullish for the date in three years. CBOT wheat futures have also fallen, with money managers boosting their net short to an eight-month high, showing the most bearish position for this time of year since 2017.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Both soybean and soybean meal supplies have remained ample globally for much of 2024, and speculators are nearing year’s end with a new record short position in Chicago-traded soybean meal. In the week ended Dec. 17, money managers increased their net short position in CBOT soybean meal futures and options to a record 88,971 contracts, up more than 16,000 on the week. That beats the old record of 77,112 contracts from February 2020. Open interest in soybean meal futures and options hit a record high last month and the latest tally is near those levels. The market has been watching record U.S. soybean crushing rates as well as strong output in South America, creating ample meal stocks. Most-active CBOT meal futures last Tuesday dipped to $284.20 per short ton, the contract’s lowest since June 2020. Meal traded much of last week at the lowest mid-December levels in nine years before surging nearly 4% on Friday. However, Friday’s settle of $302.20 is 22% lower than on the same date ...

Source: Hellenic Shipping News