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Funds cut long corn positions

06/04/2012 @ 8:12am

Money managers cut their net-long positions in Chicago Board of Trade corn futures, government data showed Friday, as investors abandon long positions on slowing demand and improved crop weather.

Broader risk aversion across many asset classes enticed fund managers to trim their long positions in the market as well.

Money managers were net-long 61,493 corn contracts, down 44% from the prior week, according to data from the Commodity Futures Trading Commission.

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

Speculators increased their long positions in wheat futures, maintaining a bullish stance on prices after dryness threatened to cut yield potential of developing wheat crops in the U.S. and abroad.

Money managers hold a net-long position in wheat totaling 15,585 contracts. They are long 85,835 positions and short 70,250.

Money managers trimmed their large net-long position in soybeans. Money managers hold 215,036 long positions and only 13,201 short positions in the week ended Tuesday. The net-long position of 201,835 contracts was down 0.2% from the prior week.

Decreased long positions coincided with declines in soybean futures prices, with slower demand and improved crop outlooks lowering buyers' enthusiasm.

In other markets, money managers were net-long 58,607 contracts in live-cattle futures, up 1.5% from the prior week.

In lean hogs, money managers reversed from a net-short to a net-long position of 2,373 contracts. Funds were net-short 2,933 last week.

-By Andrew Johnson Jr, Dow Jones Newswires; 312-342-5470; andrew.johnsonjr@dowjones.com
(END) Dow Jones Newswires
June 01, 2012 16:36 ET (20:36 GMT)
DJ CFTC AGRICULTURE: Managed Funds Reduce Longs In CBOT Corn->copyright

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