Net long corn and soy hits 20-month high as Latin drought bites: CFTC

Total net long positions of soybean and corn held by managed money hit 20-month last week, according to CFTC data, likely on fears of a downturn in Argentinian production of the foods.

The data, released late Friday, covered the week up to March 13, showed long positions for corn futures adding 30,970 contracts moving the current long position to 380,552 contracts, over a five-year high.

Short positions were trimmed by 38,559 contracts, and currently stand at 147,489 contracts, similar to July 2017.

The combined net position has seen a staggering reversal since the start of 2018, moving from a net short of 226,876 on January 16, to a net long of 233,063 by March 13, a pace not seen since last summer.

The bullish move was mirrored on the soybean futures, where an additional 21,417 long contracts were added since the previous week, with the total long positions pegged at 216,530 contracts.

Meanwhile, total short positions were reduced to just 8,330 contracts, the fewest recorded since July 2016.

As a result of the buying spree over the past week, the net long position on soybeans reached a 20-month high of 208,200 contracts.

Wheat futures showed a mixed bag, with the HRW contract extending its net long to 28,946 contracts, a seven-month high, while the SRW contract reversed its recent momentum and increased the net short position to 35,584 contracts, after subsequent weeks of squaring shorts.