Investors cut net long position in US corn futures by 13.2%: CFTC


Non-commercial grain market participants decreased their net long position in US corn futures to 286,650 contracts in the week that ended Tuesday, down 13.2% from a week earlier, the US Commodity Futures Trading Commission said Friday.

After import tariffs by the US on Chinese goods, the market is expecting retaliation from China aimed at US agricultural products, which is driving funds to get short, sources said.

"This is not driven by fundamentals but by fear," a market participant added.

Long positions rose to 655,972 contracts from 627,461, while short positions rose to 369,322 contracts from 297,422, the CFTC said in its weekly Commitments of Traders legacy report, issued after the market closed.

CBOT July corn futures dropped 6.25 cents to $3.7750/bushel in the reporting week that ended Tuesday.

CBOT July corn futures settled 1.75 cents lower at $3.6125/bu Friday.

Non-commercial market participants are large institutional investors, hedge funds and other entities trading in the futures market for investment. They are typically not involved directly in the production, distribution or management of the underlying commodity.

Corn is the main source of US-produced ethanol.


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