Hedge Funds Pour into Corn Futures Amid Seasonal Liquidation Risk

Hedge funds have significantly increased their net long positions in corn futures, according to Mike McGlone. This exposure now accounts for about 24% of open interest, which is a notable increase from June when prices bottomed near $4 a bushel.

McGlone points out that such high levels of managed-money exposure have historically not supported sustained higher prices in the past.

This recent positioning shift is part of McGlone's broader observations on shifts across multiple asset classes, including commodities and cryptocurrencies. In his earlier notes, he compared gold's first-quarter peak to crude oil's surge in 2008, highlighting powerful forces in commodities trends.