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Money Managers Bet Against Corn, Bullish on Soybeans

Investors Increase Net Longs in Beans as Rain Threatens Production

Money managers increased bets that corn prices will decline while increasing their net-long positions in soybeans.

Speculators were net-short 156,033 corn futures contracts in the week that ended September 20, up from 151,547 last week, the Commodity Futures Trading Commission said in a report on Friday.

Investors were net-long 86,782 soybean futures, up from 72,886 contracts the prior week, the CFTC said, the biggest bet on higher prices since September 2.

Investors likely raised bets on higher soybean prices as incessant rains flood fields and cause the proliferation of fungal diseases including sudden death syndrome. As much as six times normal amounts of rain have fallen in much of the Midwest in the past 60 days, according to the National Weather Service.

Bets for lower corn prices increased after the USDA earlier this month pegged production at a record 15.1 billion bushels on yields of 174.4 bushels an acre. 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 130,562 futures contracts, up from 129,643 last week, while investors were net-short by 8,554 hard-red winter wheat contracts, well below the prior week’s 13,356 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 that futures will decline.

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