Managed Money reduced its corn net long by 83,414 contracts in the week to 13 October, accelerating the liquidation recorded in the previous report. Fresh short selling contributed materially for the first time in the current sequence, while sugar funds continued accumulating longs and lean hog shorts rebuilt. The agricultural complex remains sharply divided.
TL;DR
- Corn: Net length fell 83,414 contracts to 246,425, with 63,005 longs liquidated and 20,409 new shorts added. The two-week reduction reached 134,795 contracts.
- Sugar: Net length increased 7,035 contracts to 259,549, driven by 6,622 additional longs. Buying continued but slowed substantially from the previous week.
- Soybeans: Funds reduced net length by 8,259 contracts to 249,807, reversing part of the previous week's rebuilding.
- Wheat: SRW net shorts widened to 32,555 contracts through new short selling, while HRW net longs contracted to 17,345 through long liquidation.
- Oilseeds: Soybean meal's net long held near 205,000 contracts, while soybean oil gave back part of the previous week's gains.
- Livestock: Lean hog net shorts widened by 7,113 contracts to 48,617, with gross shorts reaching 39.4% of open interest.
The Positioning Board
The CFTC's Disaggregated Commitments of Traders report, released on Friday 16 October, covers positions held at the close of Tuesday 13 October. The figures below represent futures-only Managed Money exposure across 12 agricultural markets.
| Commodity | Gross longs | Gross shorts | Net | Weekly Δ net |
|---|
| Corn | 330,244 | 83,819 | +246,425 | −83,414 |
| Soybeans | 285,231 | 35,424 | +249,807 | −8,259 |
| SRW wheat | 89,109 | 121,664 | −32,555 | −3,725 |
| HRW wheat | 59,421 | 42,076 | +17,345 | −5,908 |
| Soybean meal | 213,072 | 8,429 | +204,643 | −658 |
| Soybean oil | 114,489 | 26,517 | +87,972 | −5,546 |
| Cotton | 73,985 | 15,960 | +58,025 | +907 |
| Sugar No. 11 | 352,283 | 92,734 | +259,549 | +7,035 |
| Coffee C | 35,096 | 19,826 | +15,270 | −3,766 |
| Cocoa | 18,627 | 30,548 | −11,921 | −869 |
| Live cattle | 75,178 | 26,960 | +48,218 | −2,477 |
| Lean hogs | 68,181 | 116,798 | −48,617 | −7,113 |
Source: CFTC Disaggregated Futures-Only Commitments of Traders, positions dated 13 October 2026. All values are contracts. Net positions equal gross longs minus gross shorts, excluding spreading positions.
Changes Inside the Books
| Commodity | Δ Gross longs | Δ Gross shorts | Previous net |
|---|
| Corn | −63,005 | +20,409 | +329,839 |
| Soybeans | −4,711 | +3,548 | +258,066 |
| SRW wheat | +2,155 | +5,880 | −28,830 |
| HRW wheat | −9,354 | −3,446 | +23,253 |
| Soybean meal | −196 | +462 | +205,301 |
| Soybean oil | −1,553 | +3,993 | +93,518 |
| Cotton | −389 | −1,296 | +57,118 |
| Sugar No. 11 | +6,622 | −413 | +252,514 |
| Coffee C | −1,947 | +1,819 | +19,036 |
| Cocoa | −1,218 | −349 | −11,052 |
| Live cattle | −4,839 | −2,362 | +50,695 |
| Lean hogs | −1,509 | +5,604 | −41,504 |
Weekly changes compare positions dated 13 October with 6 October. A negative change in gross shorts represents short covering. Contract counts are not aggregated across commodities.
Corn: Selling Accelerates as Shorts Begin to Build
Corn recorded the largest absolute weekly net-position reduction among the monitored markets, with Managed Money cutting net length by 83,414 contracts to 246,425. The move followed a 51,381-contract reduction the previous week, taking the two-week contraction to 134,795 contracts, or 35.4% of the 29 September net long.
The mechanics have changed materially. Funds liquidated 63,005 gross longs, compared with 46,594 the previous week, while adding 20,409 shorts against just 4,787 previously. Long liquidation remained the dominant component, accounting for 75.5% of the net reduction, but fresh short selling now represents a meaningful additional source of bearish pressure.
Gross longs have fallen from 439,843 contracts on 29 September to 330,244, while gross shorts have risen from 58,623 to 83,819. The simultaneous reduction in bullish exposure and expansion of bearish positions distinguishes the latest move from a straightforward unwinding of an extended long book.
Managed Money nevertheless remains substantially net long. The reported position represents approximately 13.4% of corn open interest of 1.845 million contracts, so the recent selling has reduced rather than eliminated the existing directional exposure.
The next report will test whether the acceleration continues and, critically, whether short accumulation becomes a larger contributor than long liquidation. That distinction will determine whether the current adjustment remains predominantly an exit from bullish positions or develops into a more pronounced bearish positioning shift.
Soybeans: Previous Week's Rebuilding Reverses
Soybean net length declined by 8,259 contracts to 249,807, reversing part of the previous week's 11,508-contract increase. Gross longs fell by 4,711 while shorts increased by 3,548, a combination of liquidation and new bearish exposure.
The change is modest relative to the size of the existing book. Funds still hold 285,231 longs against 35,424 shorts, leaving the market substantially net bullish despite the latest reduction.
The contrast with corn remains important. Corn has experienced two consecutive large reductions, with selling accelerating in both the long and short books. Soybeans have instead alternated between moderate rebuilding and liquidation, without a comparable sustained contraction. The report therefore points to a more stable speculative position in soybeans, although the latest week's change demonstrates that the previous rebuilding has not yet developed into a persistent buying trend.
Wheat: Two Markets, Different Selling Mechanics
Chicago SRW wheat net shorts widened by 3,725 contracts to 32,555. Gross shorts increased by 5,880, more than offsetting the addition of 2,155 longs. The change extends the previous week's 6,721-contract deterioration, although the pace of net-short expansion moderated.
The short book now stands at 121,664 contracts, equivalent to 24.0% of total open interest of 506,774 contracts. That is meaningful directional bearish exposure, established through fresh short accumulation rather than the withdrawal of longs.
HRW wheat followed a different mechanism. Net length contracted by 5,908 contracts to 17,345 as funds removed 9,354 longs while covering 3,446 shorts. The reduction therefore came from a withdrawal of bullish exposure, partly offset by a smaller short book. HRW net length has fallen from 40,635 contracts on 22 September to 17,345 on 13 October, a reduction of 23,290 over three reporting weeks. It remains positive, however, while SRW remains net short.
Both wheat markets have moved towards more bearish net positioning, but through different transactions. SRW funds are expanding short exposure; HRW funds are primarily reducing longs. Neither market crossed neutral during the latest reporting period.
Oilseeds: Meal Longs Hold While Oil Reverses
Soybean meal remains one of the most one-sided directional books in the agricultural complex. Net length declined by only 658 contracts to 204,643, with gross longs falling by 196 and shorts increasing by 462.
Gross longs of 213,072 contracts stand against just 8,429 shorts, a long-to-short ratio exceeding 25 to one. The stability of the position contrasts with the more substantial changes elsewhere, leaving the existing concentration largely intact. The ratio illustrates the imbalance between the reported directional books, although it should not be interpreted as a prediction of imminent liquidation. Any meaningful withdrawal of longs would need to be established through subsequent CFTC releases.
Soybean oil moved in the opposite direction to the previous week. Net length declined by 5,546 contracts to 87,972, reversing part of the preceding 9,954-contract increase. Gross longs fell by 1,553 while shorts increased by 3,993, making new short selling the principal driver.
The two products consequently remain differentiated. Meal retains a large, stable long book, while oil has shown more pronounced changes in both directions. The latest report provides no evidence of a broad, uniform liquidation across the soybean complex.
Sugar: Long Accumulation Continues at a Slower Pace
Sugar No. 11 net length increased by 7,035 contracts to 259,549, extending the previous week's 34,178-contract increase. Gross longs rose by 6,622 while shorts declined by 413, meaning new long buying accounted for approximately 94% of the net increase.
The direction remains clearly bullish, but the pace has slowed. Funds added 30,758 longs in the preceding week against 6,622 in the latest report, indicating a marked deceleration in accumulation rather than a reversal of the existing position.
Gross longs now stand at 352,283 contracts against 92,734 shorts. Net length represents approximately 22.0% of open interest of 1.179 million contracts, leaving a substantial directional position in place.
The contrast with corn is particularly pronounced. Both markets experienced large changes over the past two reporting weeks, but sugar funds have been adding longs while corn funds have been removing them and increasingly establishing shorts. Sugar's continued accumulation is therefore not simply the counterpart of a general reduction in agricultural risk. It is a separate expansion of bullish exposure within an already sizeable position.
Cotton, Coffee and Cocoa: Divergent Adjustments
Cotton net length increased modestly by 907 contracts to 58,025, reversing a small part of the previous week's 10,719-contract decline. Gross longs fell by 389, but shorts declined by 1,296, making short covering the driver of the improvement. The move is too small to establish a sustained change in direction.
Coffee C net length fell by 3,766 contracts to 15,270. Funds liquidated 1,947 longs and added 1,819 shorts, producing a relatively balanced combination of selling mechanisms. The reduction reversed the preceding week's 2,830-contract increase and left the market moderately net long.
Cocoa remained net short, with the deficit widening by 869 contracts to 11,921. Gross longs declined by 1,218 while shorts also fell by 349, indicating that long liquidation outweighed short covering. The move reversed a small portion of the previous week's 4,970-contract improvement, which had been driven principally by short covering. None of the three markets crossed from net long to net short or vice versa.
Livestock: Lean Hog Shorts Rebuild
Live cattle net length declined by 2,477 contracts to 48,218. Gross longs fell by 4,839 while shorts declined by 2,362, leaving a smaller net bullish position through a combination of long liquidation and short covering.
Lean hogs showed a more decisive bearish adjustment. Net shorts widened by 7,113 contracts to 48,617, reversing much of the previous week's 9,131-contract improvement. Gross shorts increased by 5,604 while longs fell by 1,509, with fresh short selling accounting for approximately 78.8% of the net deterioration. The short book now stands at 116,798 contracts, representing 39.4% of total open interest of 296,644 contracts — a materially higher concentration than SRW wheat's 24.0%, in a market less than three-fifths the size.
The reversal from short covering to short accumulation is the more important weekly development. It indicates renewed willingness to establish bearish positions after the preceding week's reduction, rather than simply the unwinding of bullish exposure.
What the Rotation Reveals
The latest report reinforces the selective nature of speculative positioning across agricultural futures. Corn has experienced accelerating long liquidation accompanied by increasingly substantial short accumulation. Sugar continues to attract new longs, albeit at a slower pace, while soybean meal retains a heavily concentrated bullish book. Wheat positioning is becoming more bearish through different mechanisms in SRW and HRW, and lean hogs have returned to short accumulation after the previous week's covering. Soybeans remain comparatively stable, while cotton, coffee and cocoa show smaller, mixed adjustments.
The distinction between net changes and the transactions behind them is central. Corn's deterioration reflects both liquidation and short-building; sugar's increase is overwhelmingly new buying; HRW's decline is principally long liquidation; and lean hogs' renewed weakness is dominated by fresh shorts. These are not interchangeable forms of positioning change. They create different exposures to subsequent shifts in sentiment, even though the CFTC data cannot establish when or whether those shifts will occur.
Key Risks
Position concentration. Sugar and soybean meal retain substantial net-long books, while lean hog gross shorts represent 39.4% of open interest. Concentration can increase sensitivity to changes in expectations, but does not establish that a reversal is imminent.
Selling mechanics. Corn's accelerating reduction now includes a meaningful increase in short exposure. Further liquidation and further short-building would have different implications for the composition of the remaining book.
Contract comparability. Contract sizes, liquidity and open interest differ across markets. Absolute contract counts cannot be combined into a meaningful aggregate agricultural position.
Reporting lag. CFTC data capture positions at Tuesday's close and are published on Friday. Market activity after 13 October is not reflected in this release.
Trader classification. Managed Money is one category within the Disaggregated CFTC report. It does not represent all speculative or commercial positioning, and separately reported spreading positions are excluded from directional net calculations.
Intelligence Monitoring Points
- Corn: whether net length continues falling and whether new shorts become a larger share of the reduction.
- Sugar: whether the expanded long book holds and whether the slowdown in fresh buying continues.
- Soybeans: whether the latest reduction develops into sustained liquidation or the market returns to rebuilding.
- Wheat: further SRW short accumulation and HRW long liquidation, with particular attention to any approach towards neutral.
- Soybean meal: whether the concentrated long book begins to contract materially.
- Soybean oil: whether the reversal from the previous week's buying extends.
- Lean hogs: whether renewed short accumulation persists following the previous week's covering.
- Next release: CFTC Commitments of Traders, scheduled for Friday 23 October 2026, covering positions dated Tuesday 20 October.
The Bottom Line
Corn's 83,414-contract reduction is the dominant development in the latest agricultural positioning report. Funds removed 63,005 gross longs and added 20,409 shorts, accelerating the previous week's liquidation and demonstrating a more substantial contribution from fresh bearish exposure. The two-week reduction now totals 134,795 contracts, although Managed Money remains materially net long.
Elsewhere the picture remains divided. Sugar funds continued adding longs, taking net exposure to 259,549 contracts, while soybean meal's concentrated bullish position held broadly unchanged. SRW wheat shorts expanded to 24.0% of open interest, HRW longs contracted and lean hogs returned to short accumulation at 39.4%.
The central finding is not a uniform withdrawal from agricultural futures. It is a widening divergence in how funds are adjusting their positions, with corn moving increasingly towards bearish exposure while sugar continues to attract new buying. The next report will establish whether those trends extend or begin to reverse.
Data and source note: All positioning figures are from the US Commodity Futures Trading Commission, Disaggregated Commitments of Traders — Futures Only, positions dated Tuesday 13 October 2026 and released Friday 16 October 2026. Weekly changes compare positions dated 13 October with 6 October. Net positions equal Managed Money gross longs minus gross shorts, excluding separately reported spreading positions. Open-interest percentages are calculated against the total open interest reported for each contract in the same release. Contract counts are not aggregated across agricultural markets: futures contracts differ in size, economic exposure and market structure, and cross-market comparisons therefore concern positioning direction, mechanics and concentration rather than summed totals.
Sources
This document is published by Bloodstone Research for informational and institutional research purposes only. It does not constitute investment advice, an investment recommendation, an offer or solicitation to buy or sell any financial instrument, commodity or security, or a forecast of future performance. Market conditions and data may change without notice. Readers should conduct their own analysis and, where appropriate, seek independent professional advice before making investment decisions. For institutional enquiries contact research@bloodstonecapital.co.uk.
