Buy Strength

Corn prices have grown almost 4% yet the number of contracts that professionals are NET LONG have also grown by 6,000 contracts week ending July 31.

It also looks like more and more of the shorts are covering as well.

Here is the daily Dec Corn chart with July 31 indicated by the red lines.

Too Little, Too Late

Even if clients get 100% of their margin back, many managers and hedgers alike are already out of business because their margin balances were unavailable.

It’s doubtful if the smaller CTAs will be able to recover from this.

We not only need a central clearing place for all futures and derivatives, but we need a centralized custodian for the margin balances too.

I thought you would be interested in the following story from The Wall Street Journal.

Hope for MF Global Clients