Funds pile back into CBOT soybeans amid Brazil weather worries

Open interest in CBOT soybean meal futures and options in the week ended Nov 7 topped 600,000 contracts for the first time ever, surpassing the extremely elevated 2018 levels. — Bloomberg

UNUSUALLY hot and dry weather has gripped top soybean exporter Brazil as it plants what is supposed to be a record crop, causing concern for both soybean and corn supplies as soybean problems could bleed onto Brazil’s heavily exported second corn crop next year.

Additionally, tightness in US soybean meal supplies related to Argentina’s extreme crop shortfall earlier this year has lent significant support to soybean and soymeal futures lately.