Funds trim exposure in CBOT grains but remain acutely bullish

Benchmark Malaysian palm oil futures FCPOc3 on Friday notched a new all-time high close of 7,105 ringgit a tonne, capping off the biggest monthly gains in 13 years. CBOT soybean oil BOv1 hit another lifetime high on Friday of 87.65 cents per pound.

NAPERVILLE, Ill.,: Spculators eased their record bullish bets in Chicago grains and oilseeds last week, though corn and soybean oil futures went on to new highs in the following days and other contracts maintained their sharp yearly gains.

Although net selling was the latest theme among commodity funds, it was based predominantly on the reduction of longs and not new shorts. That indicates investors remain highly uncertain about forward price trends while also acknowledging continued threats to global supplies.