The User and Producer
The users and producers of commodities give good insight into their fundamental view of the current market conditions.
The User/Producer Index
This visual analysis provides strong indication of supply and demand, price equilibrium, and potential market behavior in a way that is unique and easy to decipher.
The User/Producer Index and Price
The results of my model indicated a strong correlation, meaning that as price moves higher, the short futures position of the commercial/use/producer increases in relationship. This has provided indication of potential market direction changes at extremes. We can see the 85-100% Index reading during the 2016 May/June corm market.
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