Funds have a large short position in corn and other grains, which suggests they might pull out at a moment’s notice if risk in other markets becomes a concern, says Ted Seifried, Zaner Ag Hedge. That means producers need to pay attention and learn as much as possible in the weeks ahead.
Those short positions in corn, for example, could be “on the chopping block,” Seifried tells “AgDay” host Clinton Griffiths in an interview broadcast Tuesday, Jan. 19. “I’m more inclined to think that between the report maybe suggesting that the low is in for now and with what’s going on globally—with the risk that’s out there with the big drop we’ve had in global equity markets—that these guys are going to be looking for risk off,” he says. “In the case of the grains right now, risk off means exiting short positions.”
That kind of uncertainty means producers stand to benefit from events such as the 2016 Top Producer Seminar happening Jan. 27-29 in Chicago. Registration is ongoing. Click here to sign up or learn more about the conference featuring an array of market experts, top farm operators, tax professionals, human resources specialists and many others.
Click the play button below to watch the complete interview with Seifried.