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Corn vs Soybeans for Net Short

Corn has yet to recover from its 2012 high of 843’6. It has been trading in a sideways channel from September of 2014 with current market forces appearing to be tilted to go to the current channel support price near the last major low of 312’0. The major grains opened lower this trading week, with all hope for bad weather to damage the crops gone out the window as the temperature for the Midwest is set to be higher this week.

 

With no recent good news for corn it might be surprising to see from the Commitment of Traders report that Money Managers are decreasing their already net short position. On 12/19/2017 Money Managers were net short 223,405 contracts, coming down to 198,493 contracts on 12/26/2017, and they are now net short 189,536 contracts as of 1/02/2018. What is interesting to note is that while they are decreasing their net short position for corn, they are increasing their net short position for soybeans, even though both have been struggling recently. One can only guess that there must something more enticing about shorting soybeans over corn right now.

 

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