Now this past week big money action was bearish. In the Disaggregated COT we see Producers dropping net shorts now at -162,540 contracts and Managed Money added to net shorts now at -47,147 contracts. And wouldn’t you know it Swap Dealers added to net longs now at 189,573 contracts. Go back 15 years when Swap Dealers were really not part of sugar, where would sugar be trading? If we see a continued bearish posture develop in the COT like we have seen before, we could see sugar head to the lows hit in May 2010 at 14.00. The large world supplies may help.
If you need help understanding how to understand how to use the NEW COT report to your benefit get instant access to my new e-book "What Lies Beneath ALL Trends". It is filled with eye opening information.Commercial Net Tracker instructions: This form tracks the Commitment of Traders (COT) data for the commodity futures market. This form "looks" at the most recent five weeks of COT data and provides visual indications of the data. A) If the current value is at a 12-month low, the cell will display a red/burgundy background. B) If the current value is at a 12-month high, the cell will display a green background. C) If the current value went from net negative to net positive, the cell will display a blue background (indicating a bullish condition). D) If the current value is both a 12-month high and also went from a net negative to a net positive, the background will be green. You should view the data with green backgrounds to determine if they also went from net negative to net positive.
Proceed to Page 3 for this week's detailed fundementals...