Hedge funds reportedly continue to cut their bullish positions to the longest extent this year, although the downside to the wheat futures markets may be limited if the commitment of traders weekly report is to be believed. The grain markets are mixed across the board today with soybeans and meal up for the day, while both wheat’s, corn and soy oil continue to lag at the Chicago Board of Trade.
The commodity futures regulatory agency – the Commodity Futures Trading Commission – reports large speculators (or, managed money) reduced their long positions last week from the 13 most traded agricultural products from cattle to cotton by almost 57,000 contracts. This has been the fifth straight week big money has reduced their shorts and something we don’t see quite often – not since last summer anyway.
Laura Taylor, a senior market strategist at RJO Futures in Chicago, shared her fundamental view of the agricultural commodity futures markets by stating, “After five weeks of reducing bullish bets, the amount of grain and other products in storage must be more than previously thought.” Taylor adds, “Only wheat futures appear to be closer to neutral.”
All agricultural commodity futures we trade are in strong down-trends with an exception of the three New York food & fiber markets we trade – coffee, sugar, and cotton. It is going to take much fundamental change to turn things around, most likely, but consumers should be in for some relief after food prices spiked earlier this decade..
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.