Last week funds continued to take an overall bearish view toward wheat. Managed Money positions in Chicago wheat sold additional long contracts, while increasing the number of short contracts held.

While Managed Money went increasingly bearish toward wheat last week, central US winter wheat producing states remain a concern with minimal rainfall remaining on forecasts.

Managed Money positions held in corn took a less bullish view, although continued to hold a significant net long bullish position.

With soybean markets having continued to push higher, it was little surprise that Managed Money increased the number of long positions held last week, up to 175.5K contracts, the largest number held since May. The number of short positions held remains minimal at just 11.1k, the least bearish toward oilseeds that Managed Money have been in almost a year.

With the Brazilian harvest now well underway, actual harvest yields will soon be known and the impact of drought conditions quantified.