Speculators Turn Bearish on Chicago Corn and Soybeans – Prices Hit Lowest Levels in Years

Speculators have significantly increased their bearish positions on Chicago corn and soybeans, pushing prices to their lowest levels since 2020. At the beginning of July, money managers expanded their net short in CBOT corn futures and options, nearing the all-time short set earlier this year. The recent sell-off in corn was mainly driven by exiting long positions, leading to a 5% slide in CBOT December corn futures.

USDA reported a slight improvement in U.S. corn and soybean conditions, but mostly benign weather conditions have weighed on futures prices. Soybean prices have also been affected, with November soybeans settling at their first sub-$11 finish since November 2020. Money managers have been expanding their net short position in soybeans for the fifth consecutive week, indicating a bearish outlook on the commodity.

Additionally, soybean oil saw a significant surge in prices, while soybean meal fell in the last week. Wheat futures also saw fluctuations, with an increase in short positions by money managers despite a rise in prices. The market analyst pointed out that these changes in commodity prices are a result of various factors impacting supply and demand.

Overall, the market for corn, soybeans, and wheat is experiencing significant shifts as speculators take bearish positions amidst changing market conditions. The USDA’s upcoming monthly supply and demand report is awaited to provide further insights into the market direction.