Large managed funds, including hedge funds, expanded their net long positions in CBOT soybeans by 35% to 44,617 contracts, as of Tuesday, according to the Commodity Futures Trading Commission. South American soybeans are a primary competitor to the U.S. soy crop and smaller supplies below the equator would mean tighter competition for U.S. stocks. 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.

Money managers again extended their dim view of the prospects for wheat prices as world supplies remain ample and weigh on competition for U.S. crops. Investment funds increased their net short position by 31.6% to 35,669 contracts.

Investors expanded their net long position in corn futures, although the CFTC data didn't capture trading moves following a U.S. government report on Thursday that forecast higher supplies of corn this year. Through Tuesday, money managers had a net long position in corn of 223,752, or 16.2% bigger than the week prior.

In lean hog futures, money managers cut their net long position to 28,614 contracts, a decrease of 12.3% from the prior week. Investors have grown increasingly concerned that domestic demand and export sales won't keep pace with higher year-over-year production.

Money managers trimmed their net long position in live cattle by 5.5% to 66,560 contracts.

-By Marshall Eckblad, Dow Jones Newswires; 312-750-4070; marshall.eckblad@dowjones.com

(END) Dow Jones Newswires

January 13, 2012 16:28 ET (21:28 GMT)