Hedge Funds Cut Bullish Bets on Euronext Wheat

Hedge funds and other non-commercial traders have reduced their bullish bets on Euronext milling wheat, cutting their net long position to 126,435 contracts in the week ending August 14 from 141,425 a week earlier.

The Euronext commitments-of-traders report provides a weekly snapshot of who's holding what in futures markets, splitting traders into non-commercials and commercials. Non-commercials still held 61.7% of all long positions but trimmed their net longs, while commercials remained heavily net short at 143,594 contracts.

The rapeseed market saw a different trend, with non-commercials nudging net longs up to 59,124 contracts from 57,807, while commercials increased their net short to 62,696 from 60,925.

Positioning can fuel short-term price moves: if funds are already heavily long, there's less new buying left to keep a rally going. When non-commercials trim net longs, it makes prices more sensitive to downside surprises.