NAPERVILLE, Illinois, Nov 3 (Reuters) - Speculators reversed course in the Chicago corn market last week, scrapping what had been relatively fresh short bets as U.S. corn export demand hits a fever pitch.

Chicago grain and oilseed futures were down across the board in the week ended Oct. 29. That included corn , which slid fractionally during the period despite having been up as much as 2%.

However, money managers slashed their net short position in CBOT corn futures and options to 17,703 contracts as of Oct. 29, down nearly 54,000 contracts on the week. That marked funds’ least bearish corn view since the beginning of August 2023.

Short covering accounted for 75% of that move, a flip from the prior two weeks during which investors boosted gross short positions. Money managers in the latest week also added gross corn longs, which are now the most plentiful since February 2023.

U.S. corn export sales hit three-and-a-half-year highs in the week ended Oct. 17, and the following week also featured well-above-average bookings. Between Monday and Friday, a total of 1.23 million metric tons of 2024-25 U.S. corn sales were confirmed via the U.S. Department of Agriculture’s daily reporting system.

SOYBEANS AND PRODUCTS

While U.S. corn is an attractive option for global importers, U.S. soybean exporters still face headwinds from ample Brazilian supplies and moderate Chinese demand. Some market participants worry that the outcome of Tuesday’s U.S. Presidential election could eventually threaten U.S. trade, specifically soybean exports to China.

CBOT January soybeans eased 2% in the week ended Oct. 29, and money managers increased their net short to 72,226 CBOT soybean futures and options contracts versus 59,574 a week earlier.

CBOT soybean meal plunged 5% in the week ended Oct. 29. That was associated with a record weekly selloff by money managers, who cut their net long by nearly 44,000 futures and options contracts to just 12,898 contracts.

They slightly reduced their CBOT soyoil net long, which fell to 37,527 futures and options contracts on a 2% decline in most-active futures.

However, CBOT soyoil surged more than 8% between Wednesday and Friday on strength in global vegoils. Malaysian palm oil futures on Friday hit their highest levels in more than two years while CBOT soyoil notched near-four-month highs.

CBOT soymeal slipped further in the last three sessions, on Friday reaching the most-active contract’s lowest price since Aug. 13, 2020.

WHEAT AND BEYOND

Money managers’ bearish views in CBOT wheat futures and options hit eight-week-highs in the week ended Oct. 29, and the resulting net short of 31,172 contracts was up about 2,300 on the week.

Wheat traders continue to monitor exports out of top supplier Russia, which are expected to ease this month versus last. Conditions for the newly sown 2025 U.S. winter wheat crop are the second worst on record for the time of year.

Aside from Tuesday’s election, market watchers will be preparing for Friday’s monthly supply and demand report from the USDA, which will include updates to U.S. corn and soybean production. Harvest paces for those crops are the fastest in more than a decade.

USDA on Thursday will be releasing select tables from its annual baseline projections that will be published in February 2025. Thursday’s tables will offer a first look at 2025-26 U.S. balance sheets, and planted area projections could be of most interest at this early stage.

Karen Braun is a market analyst for Reuters. Views expressed above are her own.

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https://www.reuters.com/markets/us/funds-assemble-least-bearish-cbot-corn-view-since-august-2023-2024-11-04/