Record Fund Position Tests Corn Market

Corn prices have been declining for five consecutive days, marking their longest slump since June. The market is lacking fresh bullish drivers despite hedge funds holding a record high net-bullish position on corn futures as of September 1. According to data from the Commodity Futures Trading Commission spanning 20 years, money managers' bets on higher prices have reached an all-time high.

The surge in investor interest was initially driven by poor US weather conditions that hampered corn yields in the world's top grower and disruptions in crop flows from the Black Sea. As a result, corn futures had reached a three-year high last week.