Agricultural Bearish Bets Cut by Hedge Fund Managers: Commodity Futures

Agricultural commodity futures bearish bets by hedge fund managers have become less aggressive for the first time since Christmas – with an exception of wheat futures. Grains are mixed across the board today – soybeans up, wheat down, and corn unchanged at the Chicago Board of Trade.

Early last week data from the Commodity Futures Trading Commission revealed “large speculators” (managed money) slashed their net “short positions” by over 87,000 contracts in both futures & options of the top 13 domestic agricultural commodity markets. The bearish bets by hedge funds had actually been building for the past four weeks before pulling positions.

The grains have led the agricultural commodity sector out of the bearish attitude of the professional money managers throughout most of the month,” said Nicholas Medina, a futures and options specialist for Capital Trading Group in Chicago, sharing his fundamental assessment of the agricultural commodity futures market. Medina added,This comes simultaneously when the Commodity Research Bureau’s index reached its lowest point since March 2002 also (last week).”

The grain markets have mixed trends, but the softs are now all down and cattle is down, but hogs are up. In my view, the agricultural commodity markets have been providing value for potential customers, but eventually a buying attitude prevails to end bear markets.

ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.