In this afternoon’s Commitment of Traders report, the CFTC shockingly reported that managed funds were net sellers of corn futures in the week ending April 21st, coinciding with the plunge to 4-year lows. As funds sold into new contract lows, commercial traders (including grain producers, merchants, processors, & end users) were big buyers. The orange line on this chart is the net commercial position in corn futures and the blue bar chart is the front-month corn futures contract. Recall that front-month May corn futures fell to a low of $3.01 on Tuesday. Managed funds added about 28,000 new shorts for the reporting period and the net commercial position increased to its longest/least short level since May 14th last year. This does not mean that the market can’t go lower but does suggest that, in aggregate, end users are finding value and locking in consumptive demand at prices seen during the week ending Tuesday April 21st.
Forecast precipitation anomaly shown below for the next 7 days. Darker green is larger % of normal precipitation and darker brown is less precip than normal. The western cornbelt will continue to see more #plant20 action than the eastern belt for the time being. Graphic courtesy of CropProphet.
Have a great weekend!