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Will Funds Stay Record Short Corn, Successful Marketing Newsletter Asks
This week’s CME Group’s farm markets have been controlled by the bears so far.
New contract lows for corn, spring wheat, and KC wheat.
Chicago wheat is flirting with new contract lows, and soybeans are at the lowest level in seven months.
What is to blame for the slide?
Here is this week’s Successful Marketing Newsletter.
The fundamental picture is more than comfortable if we assume trendline yields and acreage totals from the March USDA Prospective Plantings report.
The funds recognize this and continue to add new short positions.
As of the most recent Commitments of Traders report, the funds hold a record short position in corn of more than 307,000 contracts. The funds are also holding a record short position in KC wheat.
All combined, the funds hold a record short position across CBOT grains and oilseeds. If the weather turns, or we get some other major bullish headline, all of these shorts will need to cover. Meaning the fuel is there for a rally in prices.
See all of the analysis and price targets in this week’s Succesful Marketing Newsletter.