Fund liquidation

Corn lost 51 cents in February and soybeans lost 51.25 cents. This all happened in the last 5 trading sessions. Will new month/ new money show up to finish the week or are we looking for lower levels before buyers show back up. Funds have been in liquidation mode in corn and soybeans and are rumored to be building a hefty short position in Chicago wheat. We can only guess what their net positions are as CFTC is still a month behind on Commitment of Traders Data due to a cyber issue in January. The major concern is the funds still have good sized longs in corn and soybeans so they could bring more pain if they are in full liquidation, but we expect this is more of a bloodletting and they will find attractive levels to start buying again. We expected more support around the December low in May corn of 6.36 ΒΌ but the 6.30 area has been a better support area so far. Soybeans bounced double digits overnight after it tried to test the 100 day at 14.76 yesterday. For today, we will use 6.28 & 14.76 for support and 6.37 & 15.05 for resistance. NFC Grain Comments Options -3.1.23

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