Hedge Funds Trim Record Bearish Wheat Wager as Demand Climbs

(Bloomberg) There are finally some signs of life in the wheat market.Prices surged last week by the most in 15 months after the U.S. Department of Agriculture unexpectedly cut its forecast of global inventories. That was fortuitous for some speculators. A day before the Oct. 12 USDA report, funds cut their record bets that prices would drop.

Futures are crawling back from tough times earlier this year, when signs of the biggest supply overhang ever sent prices in August to the lowest in a decade. Since then, importers have stepped in to take advantage of the low costs. Countries including Algeria, Egypt and Syria were said to purchase or seek wheat this month. Global shipments will climb 1.6 percent this season to an all-time high of 174.7 million metric tons, the USDA predicts.

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