Through Dec. 18, money managers held a net short in CBOT wheat futures and options of just 5,625 contracts, though trade sources estimate that the short position widened to 20,125 contracts through Jan. 2. Wheat trade has been highly dependent in recent months on demand concerns surrounding the US product, and whether top-exporter Russia will continue to ship wheat at a record pace. Most recently, wheat found strength from excessive rainfall in Argentina, which is likely to downgrade crop quality.

Although prices dropped nearly 5 percent in the final two weeks of 2018, CBOT wheat futures recorded their best annual gain since 2012, rising nearly 18 percent throughout last year as supplies decreased worldwide. One year ago, funds were net short 128,178 CBOT wheat futures and options contracts.

Through Dec. 18, money managers held a net long position in Kansas City wheat of 7,083 futures and options contracts and a net short in Minneapolis wheat of 3,040 contracts.

Reuters does not collect trade estimates for fund activity in the K.C. or Minneapolis contracts, though March K.C. wheat futures fell 4.8 percent and March Minneapolis wheat fell 4 percent in the period between Dec. 19 and Jan. 2.

Copyright Reuters, 2019