Source: Ukragroconsult (Ukraine)
Non-commercial market participants increased their net short positions in Euronext food wheat futures and options in the week to October 18, data released by Euronext showed on Wednesday.
According to the data, non-commercial participants, which include investment funds and financial institutions, increased their net short position to 84,437 contracts from 61,208 the previous week.
Commercial participants increased their net long position to 92,544 contracts from 66,819 in the previous week.
Commercial short positions accounted for 41.89 percent of total short positions, while commercial long positions accounted for 55.47 percent of total long positions.
Non-commercial short positions accounted for 58.11% of total short positions, while non-commercial net long positions accounted for 44.53% of total long positions.
In rapeseed futures and options on Euronext, non-commercial market participants increased their net long position to 34,623 contracts compared to 29,233 in the previous week.
Commercial market participants increased their net short position in rapeseed to 31,229 contracts from 25,052 in the previous week.
Wheat futures on Euronext rose slightly on Wednesday, stabilizing after a three-day decline as the Chicago index recovered.
Wheat futures for December, the most active item on Euronext Paris, rose 0.1 percent to 223.75 euros ($241.02) a metric ton.
Earlier, it had slipped to 221.00 euros, the lowest since Oct. 1 and slightly below Tuesday’s previous three-week low.
However, it again held at the lower end of the chart at 220 euros and received support from a weaker euro and a rebound in Chicago wheat prices.
Floating positions on Euronext closed slightly lower.
“The market is trying to figure out if the Russian minimum export prices of $245 and $250 per ton FOB for November and December delivery will be met or bypassed,” said a German trader.
“Most published price lists are holding at these levels, but the realistic market level is $234-238.”
Traders said Russian wheat remained cheaper than Western European supplies, while Ukrainian prices were lower.
Wheat prices also fell as weather-related fears eased: Rain fell in dry areas of the Black Sea, Argentina and the US, while waterlogged fields in Western Europe are expecting a drier end to the month.
In Germany, repeated rains in recent weeks have affected winter wheat and rapeseed crops, but nationwide the problem is not serious, a German analyst said.
“It’s unfortunate, and there are some notable areas that can’t be sown with wheat yet,” the analyst said.
“But sowing is going quite well across the country and there is still time to catch up. I think Germany will be able to sow 2.8 million hectares of wheat this fall.”
This is more than the 2.6 million hectares of wheat sown in Germany for this year’s summer harvest, which was reduced due to a lack of rainfall.
Financial investors increased their net short position in wheat on Euronext last week, according to data released by Euronext on Wednesday.