It hasn’t been a great year for $CORN prices, they have been in a steady decline since August of last year. This weekend I noticed an uptick in the net position of Commercial Traders in the latest round of COT data. This is a group that normally isn’t net-long corn, but they are considered the ‘smart money’ for a reason and maybe they see something the rest of the market doesn’t.
This is the topic of my latest TraderPlanet article:
Commitment of Traders data is a great resource for getting a good idea of how various groups of traders are positions in various markets. Typically I like to see how the Commercial Traders (‘smart money’) is positioned, whether that’s net-long or net-short and to what degree. Zooming in on corn we normally see Commercial Traders hold some degree of a net-short position, which makes sense as they try to hedge out some of the risk associated with rising corn prices. Since 2009 there are just four instances where Commercial Traders went net-long – most notably in late 2010 when prices went from $3.40 to $8 and again last year before corn jumped higher.
Read the rest to see the my thoughts on the chart and the levels I’ll be watching.
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