3 Big Things Today, May 13

1. Soybeans, Grains Decline on U.S.-China Trade Woes

Soybeans and grains were lower overnight on continued concern about trade with China.

The U.S. on Friday raised its tariff rate on more than $200 billion worth of Chinese goods after negotiations failed, though talks are still ongoing. President Donald Trump said he was in “no rush” to complete a deal.

Beijing said over the weekend that it wasn’t going to make a bad deal with the U.S., and that “no one should expected China to swallow bitter fruit that harms its core interests,” according to media reports, citing the Communist Party’s People’s Daily.

China reportedly backtracked on several key issues in a final draft agreement, which led to the U.S. imposing the higher tariff rates. The Asian nation has said it will retaliate against the tariffs but has yet to do so.

Soybeans for May delivery fell 7¢ to $8.02¼ a bushel overnight on the Chicago Board of Trade. Soy meal lost 60¢ to $286.70 a short ton, and soy oil declined 0.35¢ to 26.44¢ a pound.

Corn futures for May delivery dropped 2¼¢ to $3.49½ a bushel overnight.

Chicago wheat for May delivery lost 1¢ to $4.23¾ a bushel, while Kansas City wheat declined 2¼¢ to $3.84½ a bushel.

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2. Money Managers Cut Net Shorts in Corn, Raise Bearish Bets in Soybeans

Money managers reduced their net-short positions, or bets on lower prices, in corn last week while raising their bearish positions in soybeans, according to the Commodity Futures Trading Commission.

Investors were net short by 295,998 corn futures contracts in the week that ended on May 7, down from 318,964 futures contracts seven days earlier, the CFTC said in a report. That marks the second straight weekly decline.

Speculators, however, increased their bearish outlook on soybeans, raising their net-short positions to 163,028 futures contracts last week. That’s up from 148,036 futures contracts the previous week, the agency said.

The increase in bearish soybeans positions wasn’t a huge surprise as it came after the Trump administration announced that it would raise tariff rates on more than $200 billion worth of Chinese goods, which likely means China will retaliate against the U.S., likely raising levies on several items including agricultural products.

Investors’ positions in wheat were little changed.

For hard red winter wheat, money managers raised their net-short positions only slightly to 59,759 futures contracts. That’s up from 59,640 futures contracts the previous week, the CFTC said.

Speculators lowered their bearish positions in soft red winter wheat to 86,931 futures contracts, down from 89,103 contracts seven days earlier, the agency said.

The Weekly Commitment of Traders Report from the Commodity Futures Trading Commission shows trader positions in futures markets.

The report provides positions held by commercial traders, or those using futures to hedge their physical assets; noncommercial traders, or money managers (also called large speculators); and nonreportables, or small speculators.

A net-long position indicates more traders are betting on higher prices, while a net-short position means more are betting futures will decline.

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3. Thunderstorms Fire Up in Parts of Iowa Monday Night, Flooding Continues Along Missouri River

Thunderstorms are expected to roll through Iowa tonight, while flooding continues along the Missouri River, according to the National Weather Service.

The storms tonight likely won’t be severe, the NWS said in a report early this morning. There’s another chance for storms Tuesday and then again Thursday through Sunday, though the threat of any severe weather is low.

Still, the Missouri River along the Nebraska-Iowa border continues to run over its banks. The river also is still above flood stage throughout Missouri.

At St. Joseph, Missouri, the river was at 20.4 feet as of Sunday night, still above flood stage of 17 feet, the NWS said. The river is expected to fall below flood stage by Tuesday afternoon.

At Miami, Missouri, the river was at 25 feet early Monday morning, well above flood stage of 18 feet, according to the agency. A flood warning is in effect until at least Tuesday.