Hedge funds have significantly increased their short positions in agriculture futures, reaching the shortest levels since September 2019. As of the latest data, hedge funds are short by 661,000 contracts, valued at $16.2 billion. This trend has been consistent over the past seven weeks, driven by benign weather forecasts, lower global prices, bearish seasonal trends, and negative momentum. Specifically, money managers are holding a record number of short positions in US corn, with over 500,000 contracts short. Managed Money net position in corn futures and options is at -336,538, the shortest going into the July WASDE report since 2020. This is attributed to expectations of better US weather, higher yields, and soft demand, which are anticipated to drive prices lower.