Non-commercial net fund positions on wheat futures on the Chicago Board of Trade shrank by 54,700 lots to minus 6,100 lots on the reporting week ended last Tuesday, data from the US Commodity Futures Trading Commission show.
Net short positions fell to the lowest level since early-June 2011, when net fund positions were in positive territory.
The decrease was driven by the addition of 52,600 lots of short covering. International wheat prices have been buoyed by dry spells in Russia and Kazakhstan as well as US winter wheat-producing areas.
Chicago wheat futures on Tuesday reached a nearly nine-month high of more than $7/bushel.
Wheat is the main feedstock for ethanol production in Europe.
