Hedge Funds Bet on More Persian Gulf Tension, Cotton Crowded Short, Net-Long Corn and Net-Short Soybeans

July 21, 2019 10:29 PM
Hedge funds increased bullish bets on WTI Crude Oil futures
Money managers increased net-bullish bets in Corn
Net long position in Wheat futures fell by -12,496 contracts
Hedge Fund Trader Position Sentiment


Hedge Fund Positioning COT Report

Hedge funds increased bullish bets on WTI Crude Oil futures by 42,406 contracts as of July 16, according to CFTC Commitment of Traders report on Friday. Optimism in the sector prevailed despite WTI futures dropping -7.6 for the week.  The WTI market rallied Friday after US said it shot down an Iranian drone.

Given the lag in releasing the data, it’s unclear how much hedge funds benefited from Friday’s rally.


Hedge Fund Positioning in Grain Futures:

Money managers increased net-bullish bets in Corn and Soybeans, expecting more upside from adverse weather. However, Corn futures traded down -4.17% on the week.

Hedge Funds decreased net long position in Wheat futures by -12,496 contracts. T

Other Money Manager Positions:

The net-short position in Sugar and Cotton futures increased in the report released on July 16.

Traders are monitoring Copper futures for any turnaround in sentiment and price.


About the Commitment of Trader Report 

Although not perfect, the Commodity Futures Commission's weekly Commitment of Traders gives a snapshot view of how Leveraged Funds and Managed Money is positioned in US Futures and commodity markets. These are typically hedge funds, CTAs, CPOs and various types of money managers. 

The COT Report offers clues on how large traders were positioned the prior week. The data is delayed so traders need to supplement the COT Report with other money flow indicators and trading analytics. 


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