Hedge Funds Turn Bullish on Wheat for First Time in Four Years

Hedge funds have turned net bullish on wheat for the first time in nearly four years, betting on higher prices driven by dry weather in the US and a shortage of fertilizer and fuel arising from the war in the Middle East.

Long positions on Chicago wheat outnumbered short contracts by 8,641 in the week ended March 31, according to weekly data published Friday by the US Commodity Futures Trading Commission. This reversed a net-short position that had persisted since June 2022.