AM Comments 06/26/15

Friday, June 26, 2015, 8:06 AM
Submitted by: Dustin Weiner

Continued wet weather and a chart that turned around have been the catalysts for all of this short covering and that continued last night with corn prices trading at their highest level in two months while soybeans are at their highest level in three months!  To simplify the story… before these rallies, the fund were short and the farmers were long.  Once the wet weather forecasts started leaking into the “I-States” (IA, IL, IN) causing problems… the funds started buying back their shorts (aka short covering).  Well, the only person there to sell it was the farmer and while farmer selling has been robust, the funds have easily overpowered that and taken prices higher.  I believe that at one time the funds were short 240k contracts of corn (~1.2 billion bushels).  I think that yesterday I saw that their net short position was estimated to be down to 147k contracts, so they have almost cut that in half.  I am not sure how much longer this short covering will take place, but whenever the funds stop buying, we could see a pullback in prices…


Opening Calls

Corn 9 to 12 cents higher

Soybeans 18 to 22 cents higher


Have a great day!






« Back

© 2019 Landus Cooperative, All rights reserved.
Landus Cooperative
2321 North Loop Dr., STE 220
Ames, IA 50010
Find Landus Cooperative on
facebook icon twitter icon youtube icon blog icon