Speculative funds increase the number of contracts for wheat and corn in Chicago amid unfavorable weather in Russia

According to the report of the Commodity Futures Trading Commission (CFTC), during May 8-14, traders in the United States closed short positions in wheat and corn and opened long positions, while the number of both types of positions decreased in soybeans. Traders are concerned about unfavorable weather, especially in Russia, where after a dry April, May frosts damaged some crops.

According to the USDA, heavy rains delayed the sowing of corn in the country. At the same time, it is expected that its stocks in 2024/25 MY will grow by 4%, while soybean stocks – by 30%, as export demand for soybeans is now the lowest in 23 years. However, the floods in Brazil, which could reduce soybean production by 3 million tons, will improve the prospects for U.S. soybean exports.

Quotes for soybeans, meal and oil during 8-14 may fell by about 2.5%, but traders increased net positions in soybean meal by 11000 to 99210 contracts. For the sixth week in a row, funds have been increasing their long positions, and now their number is the highest since December 2023. At the same time, the number of short positions in soybean oil decreased by 4000 to 61812 contracts as of May 14.

Over the past three sessions, soybean oil futures have risen by more than 4% as traders reversed long spreads on oil. Prices for meal fell by 1%, while soybeans rose by 1%, following oil prices.

At the same time, corn prices on the CBOT fell by 3% amid a delay in planting in the US. Rains in the corn belt will continue, which will slow down planting.

wheat Prices on the CBOT during 8-14 may rose by 4.6%, traders for the fourth consecutive week bought long positions, reducing the number of short from 42360 to 28251 contracts. In Kansas City, the number of short positions for wheat fell to the lowest level since September 2023. In addition, in Minneapolis, traders opened the first net long position in futures and options since early August after a record three-week closure of short positions in spring wheat.

Prices for all varieties of U.S. wheat over the past three sessions declined: on the CBOT wheat fell by 3% after reaching on Wednesday the highest since July 31, 2023 level of 6.97 $/bushel, and in Kansas quotes lowered above average yield.

Tags: corn, prices, wheat, USA