Bean Oil Alert:
The CFTC COT data shows the Short Funds have made a new all-time high in Bean Oil at 79123 contracts, which also pushed a new all-time high in the Fund Volume. Over the years I've witnessed these single record breaking events to prove the high or low in a market. In this case the big boys are short and adding more at possible low. If BO doesn't make new lows and prove them correct they quickly short cover to exit those shorts causing a fast pop in the futures market.
Money Managers also made a new net record short position. As the crude oil in on the fence with offshore drilling, speculation of higher prices are likely. One of the charts below show the comparison of Crude to Soyoil.
Index Funds are still the story of the last few years. Long Index Funds are still hold a massive long position, in all grains. New ETF's are coming out daily on the stock market. The most recent is "CORN" symbol, and trades only corn. A few weeks old and has 120 contracts of corn already. To pop this eventual Index Fund bubble, the stock market will have to tank in a deflationary panic. So use caution out there.
Sponsored by: Advantage Futures Inc. http://www.advantagefuturesinc.com/
Email alex@cotlive.com
