Money Managers Reduce Bets on Higher Soybean Prices
Money managers reduced their net-long positions, or bets on higher prices, in soybeans to the lowest level since mid-November.
Speculative investors were net long by 98,254 soybean contracts in the week that ended January 3, the lowest level since November 15, and down from 109,602 contracts seven days earlier, the Commodity Futures Trading Commission said in a report on Friday.
Investors were net short by 94,034 corn contracts, down from 109,602 contracts the prior week, according to the CFTC.
Precipitation in parts of Argentina and Brazil have improved crop prospects in both countries, according to weather forecasters. Bumper crops from exporting countries in South America would add to already lofty global production and stockpiles.
Net-shorts in soft-red winter wheat fell to 114,619 contracts, down from 119,665 last week, while investors were net-long 11,115 hard-red winter contracts vs. 8,738 the prior week, 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.