Money managers sharply cut their net long positions in Chicago Board of Trade corn and wheat futures in the latest week, government data showed Friday.

Managed funds, including large hedge funds, held a net-long position of 236,382 contracts as of Tuesday, down 16.4% from the prior week, according to data from the Commodity Futures Trading Commission.

Managed money cut its net long position in wheat by 12.2%, to 48,510 contracts.

The net position is the difference between the number of long contracts, or bets that prices will rise, and short contracts, or bets that prices will fall.

The selling came as demand for U.S. grain continues to struggle in the face of historically high prices. Export sales have been weak for weeks, and ethanol demand has also fallen as companies face poor margins, forcing some of them to cut back production.

In soybeans, money managers increased their net long position slightly to 174,194 contracts, an increase of 1% from the prior week. Soybean demand has remained relatively strong in the face of tight supplies, as export customers have continued to buy and domestic soybean processing margins have been strong.

Meanwhile in livestock, money managers increased their net long position in lean hogs to 31,305 contracts, up 6.5% from the prior week. Two weeks ago, the net long position was just 22,048 contracts. Lean hog futures have climbed amid strong pork prices and tightening supplies.

Managed money cut their net long position in live cattle. Money managers were net long 33,838 contracts as of Tuesday, down 12.2% from the prior week.

Write to Ian Berry at ian.berry@dowjones.com

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(END) Dow Jones Newswires

November 02, 2012 18:02 ET (22:02 GMT)