Speculators in Chicago-traded grains and oilseeds have decreased their short positions for the second consecutive week as futures prices rebound from recent multi-year lows. The collective fund positioning remains bearish for mid-March, a period typically characterized by subdued market activity as traders await crucial U.S. stocks and acreage data at month-end. In the week ending March 19, most-active CBOT corn and soybeans experienced slight declines, while wheat and soybean oil recorded modest gains. Notably, money managers significantly reduced their net short positions in CBOT soybean oil futures and options, reflecting a shift in sentiment amid rising futures prices. The recent weeks saw a substantial round of fund short covering in soybean oil, coinciding with strengthened global vegetable oil prices and improved U.S. crude and gasoline futures. Despite a decline in soybean meal prices, funds maintained their bearish views but slightly trimmed their net short positions. Short covering was also observed in CBOT soybean and corn futures and options, with speculators adjusting their positions ahead of the upcoming USDA planting intentions and quarterly stock data release. As market attention shifts to key data releases and Brazilian corn crop weather, analysts anticipate a potential increase in U.S. soybean acres compared to the previous year.
Speculators Reduce Short Positions in CBOT Grains and Oilseeds Ahead of Key US Data