Commitment of Traders Report Shows Heavy Selling in Corn Futures.
Commercial traders shed 23% of position ahead of WASDE report.
July
12, 2012
This
trade setup is merely a random sample of the day’s trades generated by COT
Signals. To track our work their and receive all of our nightly trading
recommendations, click
here.
There’s no question the corn crop
will struggle to meet the market’s expectations. Early calls are for a national
yield now aproaching 145 bushels per acre. Furthermore, much of the record
acreage planted is in marginal land with little hope for good production in
anything but perfect weather.
Despite the bullish fundamentals, commercial
traders in the grain markets were clear in their intentions of getting forward
delivereies sold ahead of the WASDE report. Their selling intensified in the last
week of the rally. They sold 27,000 corn futures contracts as the market
consolidated. Will this form an island top and gap lower leaving small specs
and funds to bail out of their long positions? I would expect the market to
fall far enough to close the gap left from July 3rd, at least.
Sign up for COT Signals!
ANDREW WALDOCK
866-990-0777
This
information is not to be construed as an offer to sell or a solicitation or an
offer to buy the commodities herein named. The factual information of this
report has been obtained from sources believed to be reliable, but is not
necessarily all-inclusive and is not guaranteed as to the accuracy, and is not
to be construed as representation by Commodity & Derivative Adv. The risk
of trading futures and options can be substantial. Each investor must consider
whether this is a suitable investment. Past performance is not indicative of
future results.
No comments:
Post a Comment