NAPERVILLE, (Illinois: Speculators have ramped up their comfort with global corn supplies this month, though US crop uncertainties continue lingering as the Corn Belt will be gripped by hot and dry weather this week, possibly impacting yield.
In the week ended Aug. 15, money managers increased their net short in CBOT corn futures and options to 72,580 contracts from 26,656 a week earlier and a net long of 16,741 two weeks earlier. That marked funds’ most bearish corn view in three months.
An increase in gross corn shorts was the dominant theme for a third consecutive week, though funds also cut longs in the latest two weeks. Most-active CBOT corn futures had dropped 4.7% in the week ended Aug. 15.
Most-active soybeans were unchanged in that week, though money managers trimmed their net long in CBOT soybean futures and options to 50,719 contracts from 64,081 a week earlier. That marked funds’ least bullish soybean stance in two months and for a third consecutive week, was primarily the result of exiting longs. Investors have also added a small number of gross soybean shorts in the last three weeks.
Open interest in CBOT corn and soybean futures and options has not fluctuated much in the last couple of months. But open interest in CBOT wheat futures and options has surged 29% over the last seven weeks, directionally seasonal but more than double the recent average rate during the period.
CBOT December wheat futures tumbled 8.5% in the week ended Aug. 15, and money managers increased their net short in CBOT wheat futures and options to an eight-week high of 65,590 contracts versus 55,395 a week earlier.
Speculators have not held a bullish view in CBOT wheat since June 2022, and the recent bump in bearishness comes despite higher tensions in the Black Sea over the last month. However, Ukraine’s 2023 grain harvest is seen topping previous expectations.
Money managers’ bullish takes on the soy products are both more elevated than normal for this time of year, though they reduced their net long in CBOT soybean meal futures and options to 56,860 through Aug. 15 from 69,143 a week earlier. That was on a 3.4% drop in most-active futures.
CBOT soybean oil futures rose 3.4% during that period, though money managers added just 145 contracts to their net long, which reached 46,668 futures and options contracts.
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