Tidbits, Soybean Meal, Export Sales, Markets & Rain Days Update 1/7/23

Highlights

Big spec and index fund managers as of last Tuesday were net long 141,877 contracts of bean meal futures and options. That is the largest long position ever, up nearly 12,000 on the reporting week and funds' 6th consecutive week of buying. The prior open interest record was set May 1, 2018.

What does that mean? It means the next person to buy soybean meal futures very well may be the last person to buy bean meal at such a high price for a very long time. But there is a monkey wrench in the numbers.

Usually, all-time large net long position brings a new all-time high price for that commodity. Not this time; not even close. On Tuesday, when that open interest record was made (reported on Fridays by the CFTC), the highest price traded that day was $456.10. In September 2012, soybean meal futures traded to $554.40, $98.30 higher! Note the previous all-time high open interest was made in 2018, but the high price that leg up was just $404.90!

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