Grain Futures Bounce, Soybeans Follow

By Benjamin Parkin Features Dow Jones Newswires

Grain futures rose Monday as traders positioned for a rebound in those markets.

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The Commodity Futures Trading Commission said Friday that hedge funds increased wagers that corn and wheat prices would fall. Money managers increased their net short position in wheat futures and options by 15% to 77,692 contracts as of last Tuesday, with a net short position of 170,684 corn futures and options.

Analysts said that funds may have overcommitted to those positions, creating ammunition for a bounce. A change in the outlook for planting weather in South America or U.S. export demand, for example, could prompt prices to rise sharply if funds reverse course.

The CFTC report "likely triggered some evening up this morning," said Dave Marshall, a farm-marketing adviser at First Choice Commodities.

Corn futures for December rose 2% to $3.51 1/4 a bushel at the Chicago Board of Trade. December wheat futures climbed 2.5% to $4.36 3/4 a bushel.

Wet weather in the central and eastern Corn Belt, which is delaying the corn and soybean harvest, spurred further buying interest on Monday.

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Soybean futures lagged behind grain prices, however, despite strong weekly export inspection figures. The CFTC said that money managers increased their net long position in oilseed futures and options by 120%.

CBOT November soybean futures inched higher, rising 0.2% to $9.80 3/4 a bushel.

Write to Benjamin Parkin at benjamin.parkin@wsj.com

(END) Dow Jones Newswires

October 23, 2017 16:05 ET (20:05 GMT)