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Money Managers Raise Bets on Higher Soybean Prices Amid Demand

Investors Decrease Bearish Bets on Corn

Money managers raised bets on higher soybean prices to the most since August amid strong demand for U.S. supplies.

Investors were net-long 111,808 soybean futures contracts as of Tuesday, up from 96,933 a week earlier, the Commodity Futures Trading Commission said in a report on Friday. That’s the biggest net-long position in soybeans since the last week of August, according to CFTC data.

Speculators were net-short 52,761 corn futures contracts in the week that ended November 1, down from 60,646 the prior week, the CFTC said.  

Investors have become more bullish on soybeans and less bearish on corn recently as demand for U.S. inventories surges. Since the start of the marketing year on September 1, exports of corn have jumped 88% from the same time frame a year ago, according to the Department of Agriculture. Soybean sales this year are up 30% from the same period in 2015, the USDA said.

Net-shorts in soft-red winter wheat jumped to 108,568 futures contracts, up from 75,579 last week, while investors were net-long by 4,018 hard-red winter wheat contracts, below last week’s 5,372 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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