BLUE LINE AG HEDGE

Corn Futures Prices Rally

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Blue Line Ag Hedge Research Team
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Video Above: Corn futures post their second consecutive week of gains, which hasn’t been seen since December. Is the rally just getting started. Oliver Sloup shares his thoughts on the recent price action as well has how Fund positioning could play a role going into the spring.

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Friday’s Commitment of Traders reports showed little change in Fund positioning from the previous week as Funds still hold a historically large net short position. That position was reported as a net short 296,795 futures/options contracts. Broken down that is 173,777 longs VS a whopping 470,572 shorts. Important to note that the weekly report is on a lag and only covers changes through March 5th.

Below is a chart illustrating the lagging data as it only accounts for about 2 of the 15 cents we rallied this week.

We’ve highlighted other historically large net short positions below, which were followed by short covering rallies in the Spring and Summer. Will we see that again this year? TBD.

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Trading involves substantial risk of loss and may not be suitable for all investors. Therefore, carefully consider whether such trading is suitable for you in light of your financial condition. Trading and hedging advice, along with market information is based on information taken from trade and statistical services and other sources Blue Line Ag Hedge, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading and hedging advice, along with market information reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. Past performance is not necessarily indicative of future results.

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