Afternoon Recap Grains

Think the smart money tosses around by fund managers always goes in the right direction? Not hardly. Money managers old crude oil futures and options last week, knocking around $432 million off their holdings – just in time for crude to gush to new highs as OPEC production cuts and fears of Middle East tensions ruled the day.

Big speculators were net buyers of ag commodities but they weren’t all jumping on the bandwagon. Hedge funds were mixed on crops while selling livestock, adding 40,904 contracts to their net long position.

Big speculators bought corn again last week, adding another 28,511 contracts to their bullish bet as prices firmed ahead of USDA’s April 10 report. Those numbers were bearish, triggering a light selloff.

Big speculators sold a little of their bullish bet in soybeans ahead of the USDA report, trimming it by 1,653 contracts. But investors buying indexes to gain exposure to commodities pusher their net long position again, adding 3,861 contracts.

Soybean oil remains the weak link of the soy complex and big speculators were selling again last week, flipping to a net short position by selling 6,927 contracts.

Big speculators have been buying soybean meal on the Argentine drought, and they were adding to their net long position again last week, buying a net 9,844 contracts.

Big speculators are still short soft red winter wheat, but they cut their bearish bet last week by 16,333 contracts as prices rallied on declining crop ratings before heading lower later in the week.

Spring wheat has been down in the dumps, but slow planting on the northern Plains changed that dynamic last week. Large traders bought at net 3,386 contracts to help support prices.

Big speculators were back in buying hard red winter wheat last week as ratings for the crop continue to dropped. Prices rallied as a result before heading south on improving weather forecasts.