Trading grains through the drought of 2012

Market Pulse: June 25

COT Data

On the weekly charts below you can see the large difference of how big money was posturing in these markets starting at the beginning of 2012. Even now look at the how big money is posturing in both markets. In Corn, producers are net short -291,953 contracts, Swap Dealers are net long 285,609 contracts and Managed Money is net long 63,271 contracts. If you look closely, you will see Corn’s net short is far from its extreme net shorts of -690,000 contracts. And were does Corn prices go if we see Producers start adding to net shorts?

On the weekly Soybean chart, you can see producers are net short -320,761 contracts, Swap Dealers are net long 103,490 contracts and Managed Money is net long 197,153 contracts. I am sure you can see the large differences on the charts.

If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.

Proceed to Page 3 for this week's detailed fundementals...

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