Money Managers More Bullish on Beans, Corn on Strong Demand
Money managers raised bets on higher soybean prices to the most in seven weeks and cut bets against corn to the lowest since July.
Investors were net-long 88,272 soybean futures contracts as of Tuesday, up from 68,789 contracts a week earlier, the Commodity Futures Trading Commission said in a report on Friday. That’s the biggest net-long position in soybeans since the last week of August, according to CFTC data.
Speculators were net-short 51,986 corn futures contracts in the week that ended October 18, less than half the 121,914 the previous week, and the lowest level since the seven days that ended July 22, CFTC said.
Investors have become more bullish on grains and soybeans in the past few weeks as demand surges. Since the start of the marketing year on September 1, exports of corn have jumped 89% from the same time frame a year ago, according to the Department of Agriculture. Soybean sales this year are up 26% from the same period in 2015, the USDA said.
Net-shorts in soft-red winter wheat fell to 100,865 futures contracts, down from last week’s 137,243, while investors were net-long by 863 hard-red winter wheat contracts, topping last week’s net-short position of 5,867, the CFTC 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 position means more are betting futures will decline.