July 2, 2011

Published on: 12:41PM Jul 02, 2011

Wheat CoT was unchanged! against last week. I suspect we will see an increase in commercial longs and fund shorts showing up in the next report, given wheat's price declines this week. Unsurprisingly, indicators read "over-sold" but oversold does not imply "end of down." Look for further declines until things change.

Corn was really hammered by this week's plantings report. 70¢ is a lot of hurt in corn prices. Last week's CoT showed funds shedding longs, commercials offsetting shorts. Next week seems likely to show more of the same. Corn, too, is oversold and likely has more downside to go.

Intriguingly, beans were the least damaged by the plantings report. An argument can be made that a bottom is near -- and maybe it is. Commercials offset shorts, funds sold longs and neutrality of positions is near, if things continue in this vein.