Wheat traders breathed a sigh of relief on Tuesday as Chicago futures rose, possibly signaling that the market is at least temporarily satisfied with Friday’s contract lows.
Reuters reports speculators have piled into the short side of the wheat market in recent weeks, likely limiting further price falls. But bigger global crops on tap for 2019 and continued export competition could keep the lid on prices in the coming months.
By Monday’s close, CBOT May wheat had tumbled 13 percent since mid-February when the latest price skid began. Within the two weeks ended Feb. 26, commodity fund managers had sold nearly 43,000 futures and options contracts.
Read the full report at Reuters.
