Latest CFTC report did not bring a singificant change in traders positioning however, in corn market, we probably observe a turning point. In general, agricultural raw materials, especially grains, are heavily oversold. It did not change since previous CFTC report.

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Current positioning in agricultural raw materials compared to other asset classes remains in a very low level, but it is also the most volatile. Source: xStatnion5

Corn

In case of this particular market, we observe a potential tipping point. Short positioning starts to fall from the extreme level, this could lead to an increase in positioning and offsetting a difference in short and long positions. Moreover, from the fundamental perspective, corn looks very attractive.

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 We observe a potential tipping point in corn market. Source: Bloomberg

 Wheat

Speaking of wheat, we observe a consolidation after large reduction of negative positioning. Price of wheat rebounded recently but it still remains under pressure, where $440 price level is a significant resistance. If prices managed to break above this level, we could observe a rise to $500 level if any positive fundamental signal occurs.

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 Positioning in wheat market remains in a consolidation. A number of open interest is at a very high level. Source: Bloomberg 

Soybean

A potential tipping point in soybean market have been neglected. Price is stil under selling pressure and a rebound in short positioning continues. For now, except US export perspective for this market, we do not see any positive news.

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 Soybean have neglected a potential tipping point in positioning. Source: Bloomberg