Managed Money Funds Heavily Short ... Everything

Periodically, we like to check the positioning of speculative funds in grain & oilseed futures markets. These days, the funds are generally short or extremely short by historical standards. While this doesn’t guarantee that a bottom is imminent, it could set the stage for a sharp rally driven by short covering if the right trigger comes forward.

In corn, the funds are at a bearish extreme. Collectively, they hold a huge net short by the standards of the past 20 years. Some analysts will interpret this as a signal that corn should be monitored for signs that a low is forming.