Grains Give Back Gains

Corn (December)

Fundamentals: Corn futures were initially higher on the Sunday night open, futures have been in retreat for much of the overnight and early morning session, trading near the levels we were at pre-USDA report. That USDA report had a bearish tilt to it, but the market managed to rally on short-covering, indicating a fundamental rejection. The Bulls must get follow through in today’s session to confirm that, a failure to do so could spark additional long liquidation from the Funds. Friday’s Commitments of Traders report showed Managed Money was net sellers of 43,548 futures contracts, (24,718 longs liquidated and 18,830 new short positions), shrinking their net long position to 202,202 futures contracts (256,533 longs and 54,331 shorts).