Corn Market Analysis Record Positions and Optimistic Outlook from Asset Managers

For the week ending February 4, asset managers significantly increased their net long position on Chicago Board of Trade (CBOT) corn futures and options to 364,217 contracts, up from 350,721 contracts the previous week. This increase in positions marks the most optimistic outlook for corn since April 2022.

The seven-week continuous bullish trend in corn has garnered significant attention, as it is the second time in the past four years that funds have been net buyers of corn for such an extended period. The last occurrence was in September 2022, although the number of contracts was noticeably smaller then.

Historical Comparison and Current Records

In the current context, it is worth noting that the latest long position in corn, held by asset managers, remains below the record set in 2010, when they reached 429,189 contracts. However, at the end of January, asset managers held a record number of open long positions, slightly surpassing the 2010 peak.

Market Influencing Factors

Recent data from February 4 may indicate an approaching peak in the bullish trend for corn, as net buying for the first time in several weeks was driven by the closing of short positions.

On February 5, the most actively traded corn futures on the Chicago Board of Trade reached their highest price since October 2023. Nevertheless, over the last three trading sessions, they have seen a 1.4% decline.

Given these changes and current trends, analysts will continue to closely monitor developments in the corn market, considering the prospects and potential for further growth of this major agricultural asset.

Asset Managers’ Prospects and Forecasts

Let’s consider the main market drivers for corn:

1. Optimistic Forecasts — The corn market is attracting attention with optimistic forecasts from asset managers.

2. Prolonged Bullish Trend — The recurrence of scenarios with prolonged net buying of corn is happening for the second time in the past four years.

3. Historical Analogs — Comparing with record figures from 2010 helps evaluate the current situation.

Current indicators for corn futures reflect sustainable demand and stable interest in this asset on agricultural markets.