Column: Funds’ bullish corn bets backed by colossal U.S. sales to China

FORT COLLINS, Colo. (Reuters) – Speculators’ bullishness in Chicago corn paused a couple weeks ago with futures trading at more than seven-year highs, but an incredible run of U.S. corn sales to China last week may have refreshed investor optimism. The week ended Jan. 26 was very volatile for CBOT corn futures and included a historic plunge in prices followed by a strong rebound, and the most-active contract finished the period up 1.2%. Through Jan. 26, money managers increased their net long in CBOT corn futures and options to 364,229 contracts from 349,495 a week earlier, according to data from the U.S. Commodity Futures Trading Commission. The addition of new longs was the bigger driver, but the move marked the sixth consecutive week that money managers covered short corn positions. The number of outright shorts dwindled to 33,220 contracts as of Jan. 26, the fewest since November 2012. Other reportable traders executed their largest corn selling week in nearly three years, reducing their net long by about 25,000 contracts to 168,757 from the previous week’s all-time record long. Index traders also reduced corn positions through Jan. 26. The U.S. Department of Agriculture on Friday confirmed that China booked 2.1 million… continue reading

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Source: CTRM Center

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