By Scott Harms, Archer Financial Services
It was a negative week for the grains as the funds reduced their long exposure across the board. Most notably was the nearly 30,000 contracts of corn sold this week by the hedge funds.
Once the market failed to extend gains early in the week, the signals to lighten the commodity load developed as the week went on. In the end the commercials were strong buyers, so the long positions are moving into better hands. his is a positive development for the next potential rally in grains.
The market will be keenly watching the USDA numbers that are released next Wednesday. If the past three years are any indication, the market’s reaction to these numbers can be quite strong.