Wheat Optimism Rises as Rapeseed Cools

Funds are increasingly optimistic about Euronext milling wheat prices, but their enthusiasm for rapeseed has cooled.

Euronext's weekly positioning data shows that funds increased their net long position in milling wheat to 153,622 contracts as of July 31. This is a significant boost from the previous week's 144,577 contracts. In contrast, commercial players moved in the opposite direction, lifting their net short position to 160,690 contracts.

The numbers reveal that funds now account for 60.6% of all long positions in Euronext wheat, while commercials are 64.1% of all short positions. This push-pull dynamic may lead to a crowded market, where price movements are driven more by flows than fundamentals.