What is the Driving Force in Corn Prices?
By Dennis Smith, Archer Financial Services The corn market has efficiently done what most commodity markets do; make it difficult for the weak-kneed traders to stay on board. After moving sharply higher in quick fashion following the surprisingly bullish USDA supply/demand report, corn prices staged a downward correction off the highs amounting to about 45 cents in about a ten day period. This was likely enough time and enough of a pullback to weed out the latecomers who bought the market aggressively near the highs. Floor sources indicated that funds were sellers on the downward retracement with the commercial end user taking the other side of the selling paper. The result has been a general increase in open interest on the downward correction. This amounts to a massive change of ownership with length moving out of the funds and long speculators and into the hands of the commercial end users. I consider this bullish. The USDA surprised the grain trade in their October 8th supply/deman
