Money Managers Increase Bets on Rising Soybean Prices to Highest in Almost Two Years

Money managers increased net-long positions in soybeans to the highest level since June 2014.

Money managers raised bets on higher soybean prices to the largest level in almost two years, according to the Commodity Futures Trading Commission.

Speculative investors in the week that ended on April 12 were net-long by 94,018 contracts, the biggest such position since June 10, 2014, according to the CFTC. Speculators have increased their bullish bets on soybeans for six straight weeks.

Investors and hedgers have been bullish on beans due to favorable fundamentals. The U.S. Department of Agriculture in a report earlier this week said stockpiles of the oilseeds will be lower than previously expected. Planting is also forecast to fall this year, according to the USDA.

Money managers lowered bets on a price decline in corn earlier this week as net-short positions fell 17% to 146,384, according to the CFTC.

Net-shorts in soft red winter wheat rose to 115,957 contracts, while those in hard red winter wheat jumped to 20,465 contracts, the government said in today’s report.

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 positions means more are betting futures will decline.

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