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Buxton ND | Don did not get to your question, funds sell commercial normally take the long side, small traders did take a small increase in net long with corn.
Commercials buy grains to HEDGE THEM, the not go out right out LONG, UNLESS one side of the commercial buys futures outright to HEDGE for another side of the company. This is how they can make bushels move WITHOUT UN-locking the farmer bins, just the way it works. Commercials just DO NOT speculate on 200-300 millions bushels of grain. Over the year many smaller commercials have went teats up by speculating and NOT HEDGING.
Commercial ARE BASIS TRADERS and the play the BASIS they are not speculators*****
On this,
"I saw numerous reports on twitter saying commercials had a much larger long position than many traders had anticipated."
This is because those "estimates" of spec positions are OFF, they were WRONG plain and simple. Specs more short/commercials more long, just the way it works. ANY estimates as to what the spec money did or did not do are just A GUESS***** THE FACT IS, NO ONE, I MEAN NO ONE knows what goes on in cyber-land trading***** Things where different back in the old "pit days" everyone knew who traded for WHO. Today,,, how in Gods green earth does someone know if I or XYZ fund bought OR SOLD sold 5k of corn yesterday ? ? ? ? ? | |
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Committment of Traders: Funds go to 1.5 byn bushels short
