Speculators raised their bullish bets on Chicago corn futures as wet weather delayed seeding of the US crop at a time when stocks in top exporter, the United States, are at their tightest since the 1930s. Hedge funds and other financial investors raised their net long positions in Chicago Board of Trade corn futures and options by 15,620 contracts to 313,860 in the week ended April 19, Commodity Futures Trading Commission showed on Friday.
Corn futures dropped just under one percent in the reporting week, with May futures narrowing its spread to the December as the focus shifted from tight old-crop supplies to rains delaying planting of this year's corn crop. These so-called non-commercial investors raised their net short position in CBOT wheat by 344 contracts to 6,151.
Wheat futures have rallied as dry weather in the US southern Plains dimmed the prospects of a good crop this year at a time when supply of high-protein wheat is in short-supply. CBOT soft red winter wheat futures climbed 4.3 percent during the reporting week, outshining corn and soybean futures, which fell and gained by less than 1 percent, respectively.
WHEAT FUTURES RALLY ON WEATHER Prices for Chicago wheat futures, which fell below those for corn for the first time in 15 years last week, have reversed that inverse and built back a solid premium against corn. Price for hard red winter wheat futures at the Kansas City Board of Trade and hard red spring wheat at the Minneapolis Grain Exchange rose more than four 4 percent in the week.
The CFTC commitment of traders report was issued on a public holiday in the United States to mark Good Friday when the markets are closed. Wheat futures in Chicago, Kansas City and Minneapolis have been lifted by the dry spell in the southern Plains, and other wheat producing and exporting nations like Britain, Germany and France, the European Union's top grain grower.
On Monday, the US Agriculture Department rated 38 percent of the US winter wheat crop in poor to very poor shape as of Sunday, versus 36 percent a week earlier. A year ago only 6 percent of the crop was rated poor to very poor. Prolonged drought conditions in Texas, Oklahoma and southern areas of Kansas, the top US wheat growing state, have left wheat industry experts fearing a poor harvest this summer.