Two weeks ago I wrote about soy beans and how the commercial hedgers were net long soybean futures for the first time in over a year.
Soybean prices dropped sharply from late August through the end of November, but the price appears to be stabilizing at this point.
The net long position has continued to increase by the commercial hedgers while the large speculators have moved to the biggest net short position in the past year.
Looking at the Commitment of Traders report for corn, it appears to be headed down the same path.
Large speculators had built a net long position on corn of over 450,000 contracts back in April and that long position is now only 164,000.
The price of corn dropped from $780 to $585 from late August through late September, but then the price of corn stabilized. Over the last two months, the price has been in a range between $585 to $660 per 5,000 bushels.
At this time, the price of corn is near the bottom of this range and seems ready for a bounce.
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