February 22, 2022

CBOT soy up on investors buying streak

Speculators extended their Chicago Board of Trade (CBOT) soybean futures buying streak, with investors' optimism at its highest in more than a year, Reuters reported.

Based on data from the US Commodity Futures Trading Commission, money managers extended their CBOT soybean futures and options to 175,372 contracts from 166,315 the week before.

This buying streak has come despite CBOT most-active futures declining more than 1% in that period. Open interest in soybeans have increased by more than a third over the past four weeks to about 1.12 million contracts, the highest surge over any four-week period in at least 15 years.

Investors are focused on how the South American drought will affect soybean crops and loss of exportable supplies. Global importers including China have purchased unusually large volumes of old and new crop US soybeans in the past few weeks.

CBOT soybean futures are 3.2% up ending at US$16.01-1/2 per bushel. This is the first time it has surpassed US$16 since May 12, 2021. CBOT soybean and soybean oil futures have increased 20% in 2022.

Soybean meal futures dropped 3.4%, but money managers have added nearly 1,000 soymeal contracts. This, at 89,170 futures and options contracts is their most optimistic since December 2020.

Brazil is projected to reap a record harvest of corn over the next few months, but world supplies of the commodity remain tight after its crop failed in 2021. CBOT most active corn futures are 1% up.

-      Reuters