On the weekly chart you can see how big money has been posturing in wheat for the past year. The drop in wheat signaled with large liquidation on the part of Producers and Managed Money. You can also see liquidation on the part of our friends the Swap Dealers (biggest U.S. banks). Over the past two weeks something interesting has happened. Managed Money now has a larger net short position then producers. Managed Money net short -52,077 contracts, Producers net short -41,125, and Swap Dealers net long 100,613 contracts. So when will wheat have a major move up? Watch big money, they’re usually very good at signaling such moves.
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...