Wheat Bets Intensify as Rapeseed Optimism Cools

Funds continued to bet on higher prices for Euronext milling wheat in the week leading up to July 31, even as they reduced their optimism on rapeseed.

Euronext's weekly positioning data shows that funds increased their net long position in milling wheat to 153,622 contracts from 144,577 a week earlier. At the same time, commercial players, who typically use futures to hedge real-world exposure to crops, moved the other way and lifted their net short to 160,690 from 146,085.

This push-pull dynamic also shows up in the totals: commercials were 64.1% of all wheat short positions, while funds were 60.6% of all long positions.

Rapeseed positioning cooled instead of intensifying, with funds cutting net longs to 64,592 contracts from 74,576, and commercial players trimming their net shorts to 66,457 from 74,667.