Corn and Wheat Bets Surge as Thunderstorms Approach

Grain and soybean trading is closed for Labor Day, resuming on Tuesday night. Meanwhile, investors are showing increased bullishness on corn and wheat, with a net-long position of 401,003 futures contracts in corn last week, up from 317,448 the week prior.

The Commodity Futures Trading Commission's (CFTC) weekly Commitment of Traders report shows that money managers were net long soybeans by 234,920 futures contracts, up from 200,679 contracts a week earlier. In wheat, hedge funds and other large investment firms increased their net-long positions in hard-red winter futures to 48,826 contracts from 42,514 the week prior.

On the weather front, strong to severe thunderstorms are expected across the northern Rockies into the northern Plains on Monday, with oppressive heat continuing through Labor Day in the Nation's Heartland. A high-pressure system brought cooler conditions across the Great Lakes and the Northeast over Labor Day, but a low-pressure system is forecast to intensify and move into the southern prairies of Canada by Tuesday night.