Fund Money Sitting On Record Short Position In CBOT Wheat

20/04/15 -- Our old mates "the funds" were sitting on a record large short position in Chicago wheat as of Tuesday night, Friday's Commitment of Traders Report reveals (click on image to enlarge).

I know I've mentioned this sort of thing before, but in my defence not for a while I haven't!

The image shows the relationship between fund length, or otherwise, and price. Even Stevie Wonder can see that there's a clear correlation. Not that the regulators would agree, for every buyer there must be a seller and vice versa, so how can their actions influence price? They are only providing much-needed market liquidity etc, etc. Bless the little lambs, and thank them heartily for the liquidity that they are undelfishly providing for you Mr Farmer when you say your prayers tonight.

The only plus side to all of this (yes - believe it or not there is one) is that you will notice that the last few times they've been anything like this short, something gets them spooked and they all exit their positions en-masse. This then causes a sharp and sudden upside price correction, as eager buyers rapidly outnumber willing sellers.

Still, what do I know....

"A fool must now and then be right, bu chance" - William Cowper