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| You are not alone. The COT report shows that elevators & processors are nearly record short the corn market. Recently showed net shot of 716,226 contracts x 5,000 bushels = 3.58 Billion bushels, out of 12.66 produced in 2010 = 28% of the crop. SO, knowing some of the crop is not hedged because it is fed to the growers own animals, and knowing that some corn will always be carried into the new crop (902 million according to USDA), I feel it is safe to say that over 1/3 of the crop has been sold BEYOND what has been purchased by end users! This is the NET position, telling us that since we know some end users have coverage (are long) that growers are more than 1/3 sold. What this neglects to address is hedges in 2011 crop & beyond.
Eventhough this doesn't make you or your pocketbook feel any better, it tells us that you are not alone & maybe more importantly, makes me wonder how much is left to sell this market & create hedge pressure? | |
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My Name is Pete and I have a stupidity problem.
