1. Corn and Wheat Futures Higher in Overnight Trading

Corn and wheat futures were higher in overnight trading while soybeans were little changed.

Strong demand has been driving prices higher in recent months, and it looks like that’s not slowing after the U.S. Department of Agriculture said on Friday that an unnamed country bought an additional 101,600 metric tons of corn for delivery in the current marketing year.

Corn sales have been on a tear recently.

The USDA reported record weekly sales in the seven days that ended on Jan. 28 of 7.44 million metric tons. China was the big buyer at 5.86 million metric tons, followed by Japan at 502,900 tons and Mexico at 403,700 tons, the agency said.

Since the start of the marketing year on Sept. 1, exporters have sold 56.1 million metric tons of U.S. corn, a 146% increase from the same time frame last year, the USDA said.

Wheat sales since the start of the grain’s marketing year on June 1 now stand at 22.6 million metric tons, a 6% increase from the same period a year earlier.

Soybean sales also have been robust, rising 82% year-over-year since the beginning of September to 58.7 million metric tons, government data show.

Investors also may be squaring positions ahead of tomorrow’s World Agricultural Supply and Demand Estimates (WASDE) report. 

Corn for March delivery rose 2½¢ to $5.51 a bushel overnight on the Chicago Board of Trade.   

Wheat futures for March delivery gained 4¾¢ to $6.46 a bushel, while Kansas City futures added 4¾¢ to $6.30 a bushel.

Soybean futures for March delivery fell ¾¢ to $13.77 a bushel. Soymeal dropped $1.60 to $428.90 a short ton, and soy oil gained 0.32¢ to 44.98¢ a pound.

2. Speculative Investors Curb Net-Longs in Grains, Raise Bullish Bets on Beans

Speculators reduced their net-long positions, or bets on higher prices, in corn and wheat while slightly raising their bullish bets in soybeans, according to the Commodity Future Trading Commission.

Investors held a net-long position of 322,309 corn futures contracts in the week that ended on Feb. 2, down from 341,178 contracts a week earlier, the CFTC said.

That’s also the smallest such position since the last week in December.

Money managers also lowered their bullish bets on wheat, holding a net 13,440 soft-red winter futures as of last week. That’s down from 14,400 contracts a week earlier, the agency said.

In hard-red winter wheat, investors held a net-long 56,401 futures contracts as of Feb. 2. That’s down from 60,239 contracts a week earlier and the smallest bullish position in three weeks, government data show.

Speculators held a net-long position of 148,247 soybean futures contracts last week, up slightly from the 148,111 contracts held the previous week, according to the CFTC. That's also the largest bullish position in beans since Jan. 12.

Investors likely have been unwinding some net-long positions after prices hit multiyear highs in recent weeks due to strong demand for U.S. agricultural products.

The weekly Commitments 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. Winter Weather Advisory Issued For Parts of Kansas, Oklahoma, Missouri

A winter weather advisory has been issued for the southern half of Kansas and the northern half of Oklahoma, along with dozens of counties in Missouri, according to the National Weather Service.

In southwestern Kansas, where hard-red winter wheat is overwintering, freezing fog and drizzle this morning is creating slippery roads and reduced visibility, the NWS said in a report early this morning.

In the southwestern quarter of Missouri, ice accumulations up to .10 inch are in the forecast.

“Cold air and road temperatures will lead to hazardous travel, especially on untreated roads,” the agency said.

The advisory is scheduled to last in the area until 6 p.m. local time, but it may be extended, the NWS said in its report.

Farther north, almost the entire state of Nebraska is facing a wind chill advisory, which remains in effect until noon. Parts of western Iowa also are included in the advisory.

Windchills are expected to drop as low as -29°F., the agency said.