Hedge funds turn more bearish on grains than soft commodities


Hedge funds turn more bearish on grains than soft commodities





Hedge funds became more bearish on grains than New
York-traded soft commodities as concerns waned over dryness damage to corn
output – while hurricane worries prompted a surge in betting on cotton price
rises.



Managed money, a proxy for speculators, expanded its net
short position in futures and options in the top 13 US-traded agricultural
commodities, from wheat to coffee, by 2,566 contracts in the week to last
Tuesday, analysis of data from the Commodity Futures Trading Commission
regulator shows.



However, the relatively small gain in the net short – the
extent to which short holdings, which profit when values fall, exceed long
bets, which benefit when prices gain – disguised contrasting movement between
the three ag complexes.



While hedge funds raised their net short in grains by nearly
19,000 lots, while selling down in Chicago-traded livestock for an eighth
successive week, the longest such spree in two years, they were net buyers of
nearly 24,000 lots in the four-main New York soft commodities – arabica coffee,
cocoa, cotton and raw sugar.



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