Hedge funds continue bearish positions on commodities
Hedge funds have extended their misfortune on agricultural commodities, as increasingly negative sentiment on sugar and livestock more than offsets a reevaluation of laid-back positioning on wheat.
According to data from the Commodity Futures Trading Commission regulator, managed money cuts its net long position in futures and options in the top 13 U.S.-traded agricultural commodities from coffee to corn by more than 18,000 contracts in the week leading up to last Tuesday. It was the eighth consecutive week in which hedge funds reduced their net long.
The drop is fuelled by the increasing confidence in record U.S. corn and soybean crops and reduced fears over sugar supplies too, despite drought issues to Brazilian sugarcane.
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Monday Market Sentiment: $153.36
Last Week’s Trade: $153.14
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