Hedge Fund Positioning COT Report
Hedge funds increased bearish bets on Natural Gas futures by 37,238 contracts as of July 23, according to CFTC Commitment of Traders report on Friday. Pessimism in the sector prevailed and Natural Gas futures dropped -3.6% for the week. Large natural gas supply has hammered prices down -34% year-to-date.
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 decreased net-bullish bets in Corn, after better weather. Traders are still positioning long and looking for reduced yields. However, Corn futures traded down -3.7% on the week.
Hedge Funds decreased net long position in Wheat futures by -8484 contracts on the week.
Other Money Manager Positions:
The net-short position in Sugar and Cotton futures increased in the report released on July 23.
Traders continue to like long positions in Gold, Japanese Yen/USD, and Cocoa futures.
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.