Hedge fund managers have ramped up their bearish bets on US corn futures to record levels, driven by elevated grain supplies and the best early crop ratings in years. These factors have pressured corn prices lower.
Bloomberg data reveals that money managers have boosted their short-only positions in Chicago corn futures and options to 507,901 contracts, exceeding the previous record of 506,000 contracts in 2019. The net position, which accounts for the difference in long and short holdings, was bearish by 353,983 contracts, the largest since 2006.
Last month, Reuters reported that an above-average volume of corn remains unsold, and if these grain inventories are not depleted, then supplies could reach six-year highs by late summer 2025.
“Farmers risk waiting too long to sell as a flood of newly harvested grain is likely to drag down prices this October and November. Buyers, aware the harvest is coming, still need enough supplies to keep processing plants running and exports flowing this summer,” Reuters said.
Elevated supplies have pressured prices in Chicago to under the $4 a bushel level, the lowest level since early 2020.