Corn Futures Trend Higher as Noncommercial Traders Build Record Net-Long Positions
Corn futures are trending higher as of September 22, according to recent data from the CFTC. Noncommercial corn traders held a net-long position of 535,801 contracts, nearing the all-time record of 547,677 contracts set in late January 2021.
This surge in net-long positions is likely due to the anticipation of an advancing U.S. harvest, which has kept prices in a holding pattern. Despite this, commercial corn traders are still holding a net-short position of 474,811 contracts, indicating they expect prices to drop further.
The spread between the December 2026 and March 2027 contracts has firmed up over the past eight weeks, with the December contract priced 13 3/4 cents lower than the March contract. This could be a sign that commercial traders are hedging their bets against future price drops.