Funds Record Short Corn Again
The managed money accounts or "the funds" as they are often referred to set another record last week. As of last Tuesday they were short or sold 322,000 corn contracts. The Commitment of Traders Report is released every Friday afternoon after the grain markets close. Corn was trading about 5 cents lower Thursday morning and there were reports the funds were short around 400,000 contracts before they covered or bought back about 18,000 contracts.
The funds are also short 130,000 bean contracts. Normally the funds are long or have bought grain contracts at this time of year. Last year at this time the funds owned or were long a little over 400,000 grain contracts including corn, soybeans and wheat. This year they are short or have sold more than 650,000 contracts! That is difference of over one million sold contracts this spring compared to last spring.
All the news is so negative right now and the position of the funds reflects that. What we need is a spark or some good news to get the funds to begin to buy back all those sold contracts.