CME Group corn bets and soaring diesel prices pressure farmers

Net speculative positions in corn futures on the CME Group remained heavily long last week, while short positions in soy were reduced, according to data released by the U.S. Commodity Futures Trading Commission. Despite the bullish bets, corn futures fell intra‑week, highlighting a disconnect between market speculation and price movements.

The episode occurs amid broader financial turbulence, including a sharp U.S.‑Japan currency intervention, a 70% drop in United Wholesale Mortgage’s market value and a surprise loss of 23,000 U.S. jobs in July, which have kept U.S. equity markets volatile and fed expectations for interest‑rate policy split.

In Spain, Javier Fatas of the Coordinadora de Organizaciones de Agricultores y Ganaderos (COAG) warned that a 30‑50% surge in agricultural diesel prices – driven by the U.S.–Israel‑Iran conflict – threatens the viability of planting. A government diesel subsidy of €0.20 per litre is set to expire in September, and COAG is pressing the ministry to extend the aid through the autumn sowing season.