Speculators Add to Long Positions; Commercials More Short

July 16, 2010

In response to USDA’s July reports, non-commercial traders (traditional speculators) added a hefty 76,000 long positions in corn, carrying their net long to 93,000, and 58,000 in soybeans, reversing from 23,000 short to 34,000 long. They reduced their short wheat position from 54,000 to about 36,500. These traders account for only 6% to 7% of open interest, however.

Commercial traders, on the other hand, who account for 27% to 28% of open interest, have added heavily to their short positions: 64,000 in corn, 68,500 in soybeans and 17,000 in wheat.

Index (long-only) traders, which account for 31% of corn, 29% of soybeans and 39% of wheat open interest, took profits out of corn, reducing their long position modestly to 467,000 contracts. They added almost 6,000 to soybeans, bringing their net long position to 175,000 and 2,377 to wheat, to a total of 215,400.