AI
| Followers | 689 |
| Posts | 143817 |
| Boards Moderated | 35 |
| Alias Born | 03/10/2004 |
Sunday, May 26, 2019 10:18:46 AM
Corn Stop Out-Pocalypse
By: Bespoke Investment Group | May 24, 2019
Earlier this week we discussed the very poor condition of the corn crop's spring planting. Apparently, corn speculators are taking the data to heart. The chart below shows the percentage of outstanding open interest that represents the number of contracts speculators hold long net of their short positions. This data is released weekly in the CFTC's Commitment of Traders report. As shown, corn speculators have abruptly about-faced from a historically large short position to a very small long.
The change has been one of the largest in the last 20 years, equivalent to 11.4% of open interest. In other words, as corn prices have surged, positioning has been cleared out. That could be a good sign for where prices head next if you assume that speculators are going to keep pushing contracts higher by building longs. On the other hand, with positioning now cleaned out, the contrarian view is that markets are vulnerable to bearish moves now without large and vulnerable shorts that are sensitive to price moves higher.
Read Full Story »»»
• DiscoverGold
By: Bespoke Investment Group | May 24, 2019
Earlier this week we discussed the very poor condition of the corn crop's spring planting. Apparently, corn speculators are taking the data to heart. The chart below shows the percentage of outstanding open interest that represents the number of contracts speculators hold long net of their short positions. This data is released weekly in the CFTC's Commitment of Traders report. As shown, corn speculators have abruptly about-faced from a historically large short position to a very small long.
The change has been one of the largest in the last 20 years, equivalent to 11.4% of open interest. In other words, as corn prices have surged, positioning has been cleared out. That could be a good sign for where prices head next if you assume that speculators are going to keep pushing contracts higher by building longs. On the other hand, with positioning now cleaned out, the contrarian view is that markets are vulnerable to bearish moves now without large and vulnerable shorts that are sensitive to price moves higher.
Read Full Story »»»
• DiscoverGold
Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Your Due Dilegence is a must!
• DiscoverGold
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
