# Funds extend short covering in CBOT wheat on dry Russian crop

> Funds extended short covering in CBOT wheat as Russian crop dryness raised supply concerns. The article also notes soybeans and meal rallied after an Argentine port strike and Brazilian flooding that may have cut Rio Grande do Sul soybean output by 15%.

- Date: 2024-05-07 · published 2024-05-07T12:00:00.000Z
- Category: weather · region Global · magnitude medium
- Page: https://feedsoft.ai/events/6447-funds-extend-short-covering-in-cbot-wheat-on-dry-russian-crop
- Commodities: [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Dry Russian conditions tighten the wheat export outlook from the world's largest supplier, supporting wheat prices. Port strikes in Argentina and flooding in Brazil cut soy and meal supply, lifting soymeal prices for feed buyers.

## Read by commodity

- SBM: bullish ▲
- SBO: neutral
- SOY: bullish ▲
- WHEAT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBM | 2024-05-08 | 5 | +7.0% | 2.9 | Argentine port strike and Brazilian flooding (possible 15% Rio Grande do Sul output cut) triggered a soybean and meal rally via supply disruption and export-flow concerns. |
| SBM | 2024-05-06 | 1 | +4.3% | 5.0 | It links the meal rally to an Argentine port strike and Brazilian flood losses, which are plausible supply-side drivers, but it is dated May 7 and is partly about wheat. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2024-05-22 | [Russian wheat shortfall a boon to US exporters of ... corn?](https://feedsoft.ai/events/4590-russian-wheat-shortfall-a-boon-to-us-exporters-of-corn.md) | -7.4% | -10.9% |
| WHEAT | 2024-12-06 | [Dire Russian crop health and Ukraine export risks threaten Black Sea wheat \| Reuters](https://feedsoft.ai/events/14243-dire-russian-crop-health-and-ukraine-export-risks-threaten-black-sea-wheat.md) | +0.7% | +0.4% |
| WHEAT | 2024-04-19 | [Wheat Prices Rise On Russia Dryness](https://feedsoft.ai/events/30701-wheat-prices-rise-on-russia-dryness.md) | +0.8% | +2.3% |
| WHEAT | 2023-06-06 | [Wheat prices are recovering amid increased demand and lower crop forecasts](https://feedsoft.ai/events/35513-wheat-prices-are-recovering-amid-increased-demand-and-lower-crop-forecasts.md) | -0.1% | +2.2% |
| WHEAT | 2024-04-26 | [Dry Russian winter wheat areas in focus: Grain market daily \| AHDB](https://feedsoft.ai/events/12145-dry-russian-winter-wheat-areas-in-focus-grain-market-daily-ahdb.md) | -2.3% | +21.2% |
| SOY | 2021-02-22 | [Dry weather concerns extend from South America into North America](https://feedsoft.ai/events/48467-dry-weather-concerns-extend-from-south-america-into-north-america.md) | +2.0% | +2.8% |
| SOY | 2023-06-26 | [Funds spooked out of CBOT shorts by parched US corn, soy crops  \| Reuters](https://feedsoft.ai/events/35509-funds-spooked-out-of-cbot-shorts-by-parched-us-corn-soy-crops-reuters.md) | +4.2% | +1.9% |
| SOY | 2020-11-28 | [Dry weather in Brazil could extend enthusiasm in corn, bean markets - Renewable Farming](https://feedsoft.ai/events/50002-dry-weather-in-brazil-could-extend-enthusiasm-in-corn-bean-markets-renewable.md) | -2.4% | +5.3% |

## Sources

- reuters.com: https://www.reuters.com/markets/europe/funds-extend-short-covering-cbot-wheat-dry-russian-crop-2024-05-07/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.