Death comes to us all. Life's but a walking shadow | If you look at the most recent Commitment of Traders (Nov. 10 futures only) for corn you will see that Commercial longs have increased by 34,000 contracts while the Commercial shorts have declined by 24,858. In contrast the Managed Money trader longs have declined by some 21,000 and the shorts have increased by 51,000. At the same time the Other reportables have increased their long postions by 18,800 & shorts by 1,785. So basically the Other reportables have picked up Managed Money's longs while the Managed Money's 51,000 has soaked up the change in the Commercial position from way short to less short.
Something similar but less pronounced happened in Soybeans, I didn't check the other contracts.
I think what happened here was that.
One, previously priced corn got sold & delivered and the Commercials holding that corn liquidate their futures positions even as producers stopped selling which would have generated new short positions.
Two , endusers anticipating their need for corn in the future took positions to protect their price.
The way I interpret this is producers aren't selling but endusers are getting a little nervous and want some protection.
Meanwhile the Other Reportables and the small speculators as well (Non Reportables) are thinking that corn might go up increased their long positions. Managed Money is just balancing out the other actors.
I think this means that somebodies belive the price can go up. I guess we'll all just have to wait & see what happens. |
I want this chart*****
