Friday saw the latest release from the CFTC on fund positions. In corn, managed money added 70k contracts to their short position to put them at -200k. This is the largest level since early January and the lowest bullish sentiment measure this year. Short covering is the reason we have seen a firm market the past few days because fundamentals have not changed.
In wheat, managed money is short 107k contracts of SRW, the largest since last May. Typically, a wheat short covering rally lasts 3 days, and today we are lower (4th day).
Any late planting forecast for the Midwest or talk of prevent plant acres there will force the funds to cover some more shorts in corn.