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Hedge funds’ record corn long faces pressure as prices extend losses

Chicago corn futures fell as much as 1.1% Wednesday, while commodity funds held a record net-long position as of 1 September.

Reported · Written up by our desk · Hedge Funds

Corn prices are set for their longest losing streak since June as declines extend into a fifth straight session, adding pressure to hedge funds after they built record bullish exposure in the crop, according to a report by Bloomberg cited by Hedgeweek.

The most-active Chicago corn futures contract fell as much as 1.1% on Wednesday. Commodity funds held a record net-long corn position as of 1 September, based on 20 years of Commodity Futures Trading Commission data.

Hedge funds had increased their bullish exposure amid concerns that adverse US weather could weigh on yields, and supply disruptions tied to Black Sea crop shipment issues. Hedgeweek reports the magnitude of positioning could leave funds vulnerable if any rally continues to unwind, with corn’s 14-day relative strength index recently moving above 70, a level often viewed as signaling overbought conditions.

Investors now have a key catalyst on Friday, when the US Department of Agriculture is scheduled to release its latest World Agricultural Supply and Demand Estimates. Hedgeweek notes analysts expect USDA to cut forecasts for both global and US corn inventories for the 2026-27 season, while USDA data shows farmers had harvested 5% of the corn crop by 6 September, ahead of last year’s pace, which could add headwinds if the latest USDA numbers do not reinforce the bullish case.

Latest closeCorn $532.75 ▲4.0%

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