Corn prices have continued to inch upward in the wake of the WASDE and Quarterly Stocks report.
Non-commercial positions turned bullish on a weekly basis for the first time since early December ‘12 as it appears that hedge funds moved to chase the price of corn. Slightly over 21K futures contracts were added on the long side offset by 13.4K contracts short (net positive 7.8K, 58% net bullish positioning).
Net positioning (net long positions/net short positions) remains bullish at 166%, well off the ’12 highs that we saw back in December (525%).
Our bias continues to be short corn, but we also recognize that there is a bit of a data vacuum over the next two months, and that we might see some upward pressure as hedge funds “correct” positioning into planting intentions.
Enjoy the long weekend.
HEDGEYE RISK MANAGEMENT, LLC