Funds Turn Massive Sellers of Corn
Market calm in face of wet conditions.
Bryce Knorr
Published: Apr 27, 2009
Farmers sometimes believe that speculators are mostly ignorant about the true nature of their markets. That notion could be put to the test in a major way over the next week or two.
Friday's CFTC report showed speculative hedge funds were massive sellers in corn during the latest week, dumping almost 50,000 contracts to move from a net long to a net short position. Open interest, which had be mostly rising over the last six weeks, fell 10,000 contracts and will like fall further in this week's report with expiration of May options.
Corn was able to hold the $3.60 level, as the market finally took notice of the slow pace of planting. Still, the market is relatively calm in the face of wet conditions across the heart of the Corn Belt had farmers wondering what the speculators were smoking.
Truth is, the fast money crowd isn't likely to jump on the planting delays bandwagon as long as 65% to 70% or more of the crop is planted by May 10.
To read Bryce Knorr's complete weekly corn review, click HERE.
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