Placing My Bets on Corn and Soya Soybeans

According to Commodity Futures Trading Commission data, large speculators increased long positions in CBOT corn and soyabean futures and options, but trimmed longs in wheat in the week ended November 14.

There were quick demand from the export, livestock and ethanol sectors that fuelled bullish optimism in corn. This demand sent December futures to the highest level in the week ending November 14 in a decade for a lead month. That was followed by a downward correction but tight feed grain stocks kept on encouraging investment in corn, according to the traders.

Funds added not only 8,151 long positions in corn futures and options in the week, but also added 5960 shorts in the latest reporting week. In the previous week, they were net long 2,88,101 lots, up 2,191 from net long 2,85,910 lots.

Soyabeans drew some spill over support from the surging corn but also drew support from a growing soya oil market. In the previous week, large speculators were net long 45,291 lots in soyabean futures and options, up 2,912 from net long 42,379 lots.

In CBOT wheat futures and options, funds trimmed both long and short positions, but remained net long in the latest reporting week. The prior week, large speculators were net long 35,874 contracts in wheat futures and options, down 1,874 from net long 37,748 contracts.

In the latest reporting week, funds expanded long positions and trimmed shorts in soya oil futures and options. Speculation over rising demand for biofuels has prompted investment in soya oil. The soya oil is used to produce biodiesel fuel.

In soya oil futures and options, large specs were net long 64,341 lots, up 16,524 from 47,907 contracts during the prior week. Funds were net long 32866 contracts as of Tuesday in soyameal futures and options, up 2070 from net long 30796 contracts a week earlier.