Farm Markets Come to Life, Move Higher

The last week of January has had some fireworks, as the corn, wheat, and bean markets have all come to life with prices moving to their highest levels in months. It can be argued that wheat is the leader. We saw wheat futures prices rally mid-summer due to concern over lack of snow cover and continued dry weather in major U.S. winter wheat growing regions. More importantly, the technical picture indicates a significant buildup of short positions in recent months by managed money. Managed money goes short futures when they believe prices are headed lower.