Video Above: Corn futures post their second consecutive week of gains, which hasn’t been seen since December. Is the rally just getting started. Oliver Sloup shares his thoughts on the recent price action as well has how Fund positioning could play a role going into the spring.

Friday’s Commitment of Traders reports showed little change in Fund positioning from the previous week as Funds still hold a historically large net short position. That position was reported as a net short 296,795 futures/options contracts. Broken down that is 173,777 longs VS a whopping 470,572 shorts. Important to note that the weekly report is on a lag and only covers changes through March 5th.

Below is a chart illustrating the lagging data as it only accounts for about 2 of the 15 cents we rallied this week.

We’ve highlighted other historically large net short positions below, which were followed by short covering rallies in the Spring and Summer. Will we see that again this year? TBD.

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