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Money Managers Again Push Bets on Higher Soybeans to Lowest Since April

Bets on Higher Prices Drop as USDA Forecasts Record Output

Money managers again pushed bets on higher soybean prices to the lowest level since April as the U.S. Department of Agriculture forecast record production.

Speculators were net long 72,886 soybean futures contracts in the seven days that ended September 13, down from 77,547 the prior week, the smallest number of bets on higher prices since the week that ended April 8, the Commodity Futures Trading Commission said in a report Friday.   

Investors were net short 151,547 corn futures contracts, down from 186,127 the prior week, the first decrease in bets against higher prices in three weeks, the CFTC said.

The USDA on Monday pegged corn yield at 174.4 bushels an acre, down from 175.1 bushels the prior month but still above expectations. Output was forecast at a record 15.1 billion bushels. Soybean output was projected at 4.2 billion bushels, also the highest ever, on yields of 50.6 bushels an acre, the government said.

Net shorts in soft red winter wheat fell to 129,643 futures contracts, down from 137,451 last week, while investors were net short by 13,356 contracts, less than the prior week’s 16,968 hard-red winter wheat contracts, the CFTC said in today’s report.

The weekly commitment of traders report from the Commodity Futures Trading Commission shows trader positions in futures markets.

The report provides positions held by commercial traders, or those using futures to hedge their physical assets; noncommercial traders, or money managers (also called large speculators); and nonreportables, or small speculators.

A net long position indicates more traders are betting on higher prices, while a net short position means more are betting futures will decline.

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