Euronext Wheat: Funds Sharply Increase Long Positions
Financial operators sharply extended their longs on Euronext wheat last week, taking the net long to 111,938 lots. The contract is currently trading around €245/t in a consolidation phase after testing €240/t. A look at positioning, fundamentals and the influence of crude and EUR/USD.
Financial operators moved their positions sharply last week.
Funds simultaneously sold 47,012 short contracts and bought 41,338 longs, taking their net long to 111,938 lots, against 23,588 lots the previous week. That level had not been seen since May 2024.
Commercials, conversely, sharply increased their shorts, moving from a net short of 3,688 lots to 110,558 lots over the same period.
Euronext wheat is continuing the uptrend begun on 10 July, even though the market paused early this week after testing €240/t. Profit-taking was heavy, but the correction remains contained and looks more like consolidation than a trend reversal.
At €245/t currently, the contract retains positive momentum. Uncertainty over Black Sea exports and disappointing harvests in northern Europe continue to support prices.
Demand is still there, as shown by yesterday's purchase of 100,000 tonnes by Tunisia.
On the energy front, crude and gas are holding an upward bias, driven by tensions in the Middle East and risks to Red Sea transit. WTI is currently trading around $87 a barrel, which lends indirect support to wheat prices through higher energy costs.
Finally, EUR/USD has been stuck for almost a month in a 1.13 to 1.14 consolidation, against an underlying downtrend.