Grain Markets on Edge as Funds Hold Record Long Positions

Grain markets are bracing for the September WASDE report, which could bring significant price movements. According to commodity broker Craig Turner, funds are record long in corn and meal, with soybeans and some wheat contracts not far behind.

However, Turner cautioned that fund buying alone can only push prices so far, pointing out that demand inelasticity of corn and soybeans is the real driver of any next leg higher. He noted that this pattern played out in 2008 and 2012, when fund length eventually gave way to physical market tightness.

Hedging strategist Cory Bratland offered a similar view from the farmer marketing side, noting that funds are record net long corn and closing in on a record long position in soybeans. However, he said this positioning has started to look 'somewhat muted' as a market driver.