{"id":1946,"date":"2024-07-05T10:27:00","date_gmt":"2024-07-05T10:27:00","guid":{"rendered":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/?p=1946"},"modified":"2024-07-05T10:27:01","modified_gmt":"2024-07-05T10:27:01","slug":"cotton-is-at-its-lowest-hedge-fund-position-for-the-past-52-weeks-arabica-coffee-is-very-near-its-highest-level","status":"publish","type":"post","link":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/cotton-is-at-its-lowest-hedge-fund-position-for-the-past-52-weeks-arabica-coffee-is-very-near-its-highest-level\/","title":{"rendered":"Cotton is at its lowest hedge fund position for the past 52 weeks. Arabica Coffee is very near its highest level"},"content":{"rendered":"\n<p>SpreadEdge Capital specializes in seasonal spread trading across a wide variety of commodity markets. A spread trade is the simultaneous purchase and sale of the same commodity with different delivery dates. &nbsp;SpreadEdge publishes a weekly Newsletter that provides several seasonal spread trade opportunities every week.<\/p>\n\n\n\n<p><em><strong>Overview<\/strong><\/em><\/p>\n\n\n\n<p>The Commitment of Traders (COT) report, issued by the Commodity Futures Trading Commission (CFTC), offers a weekly snapshot of the positions taken by different market participants in the U.S. futures markets. This information aids traders and analysts in comprehending market sentiment and developments. &nbsp;Published every Friday at 3:30 PM Eastern Time, the COT report reflects positions held as of the previous Tuesday&#8217;s closing business hours. &nbsp;Peak Trading Research assesses the latest COT report, examining alterations in price and open interest to provide an appraisal of net fund positioning daily.<\/p>\n\n\n\n<p><em><strong>Hedge Fund Position Estimates<\/strong><\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"573\" src=\"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-58-1024x573.png\" alt=\"\" class=\"wp-image-1947\" srcset=\"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-58-1024x573.png 1024w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-58-300x168.png 300w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-58-768x430.png 768w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-58.png 1126w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"299\" src=\"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-59-1024x299.png\" alt=\"\" class=\"wp-image-1948\" srcset=\"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-59-1024x299.png 1024w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-59-300x88.png 300w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-59-768x224.png 768w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-59-1536x449.png 1536w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-59.png 1560w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n\n\n\n<p><em><strong>Cotton<\/strong><\/em><\/p>\n\n\n\n<p>Cotton finish last week at its lowest hedge fund positions for the past 52 weeks. &nbsp;Note that hedge funds have sold over 132,000 contracts since the high in March. &nbsp;Hedge funds have plenty of capital to add to their existing positions and can drive prices up quickly when they begin to buy.<\/p>\n\n\n\n<p><em><strong>Arabica Coffee<\/strong><\/em><\/p>\n\n\n\n<p>Coffee has hovering at or near 60,000 net long positions for the past several weeks and continues to be very near its highest level for the past 52 weeks. &nbsp;Coffee is 101,000 above its low and almost 45,000 above average.<\/p>\n\n\n\n<p><em><strong>Soybean Oil and Sugar<\/strong><\/em><\/p>\n\n\n\n<p>Soybean Oil and Sugar are very near their lowest hedge fund positions over the past 52 weeks.<\/p>\n\n\n\n<p><em><strong>Conclusion<\/strong><\/em><\/p>\n\n\n\n<p>Each of these markets are at or very near extreme levels are likely to reverse in the near future. &nbsp;I am currently long a Cotton butterfly spread and expect higher prices over the near term. &nbsp;I&#8217;m also looking at positions on some of these other markets.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"800\" height=\"450\" src=\"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-60.png\" alt=\"\" class=\"wp-image-1949\" srcset=\"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-60.png 800w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-60-300x169.png 300w, https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-content\/uploads\/2024\/07\/image-60-768x432.png 768w\" sizes=\"(max-width: 800px) 100vw, 800px\" \/><\/figure>\n\n\n\n<p><em><strong>More Information<\/strong><\/em><\/p>\n\n\n\n<p>Use coupon code \u201cSpreadEdge\u201d and get the&nbsp;<a href=\"https:\/\/spreadedgecapital.com\/products\/\">Weekly Newsletter and Daily Alerts<\/a>&nbsp;for $1 for the first month.<\/p>\n\n\n\n<p>For a limited time, you can receive my&nbsp;<a href=\"https:\/\/spreadedgecapital.com\/product\/monthly-subscription-to-the-daily-updates-services-and-spreadedge-newsletter-2\/\">Futures Training Videos<\/a>&nbsp;for free with a 3-month, 6-month, or 12-month subscription.<\/p>\n\n\n\n<p>For a FREE eBook about the&nbsp;<a href=\"https:\/\/spreadedgecapital.com\/futures-101\/\">SpreadEdge seasonal spread strategy<\/a>.<\/p>\n\n\n\n<p><em><strong>More Information<\/strong><\/em><\/p>\n\n\n\n<p>The SpreadEdge Weekly Newsletter is published every weekend and provides a broad overview of the important seasonal, technical, and fundamental indicators within the Energy, Grains, Meats, Softs, Metals and Currency markets. &nbsp;In addition, spread trade recommendations and follow-up on open trades is also provided. &nbsp;For a free copy of the Weekly Newsletter, please send an email to info@SpreadEdgeCapital.com<\/p>\n\n\n\n<p>Darren Carlat<\/p>\n\n\n\n<p>SpreadEdge Capital, LLC<\/p>\n\n\n\n<p>(214) 636-3133<\/p>\n\n\n\n<p>Darren@SpreadEdgeCapital.com<\/p>\n\n\n\n<p><a href=\"https:\/\/spreadedgecapital.com\/\">www.SpreadEdgeCapital.com<\/a><\/p>\n\n\n\n<p><em><strong>Disclaimer<\/strong><\/em><\/p>\n\n\n\n<p>SpreadEdge Capital, LLC is registered as a Commodity Trading Advisor with the Commodity Futures Trading Commission and is an NFA member.&nbsp;Past performance is not indicative of future results. Futures trading is not suitable for all investors,&nbsp;The risk associated with futures trading is substantial.&nbsp;Only risk capital should be used for these investments because you can lose more than your original investment.&nbsp;This is not a solicitation.<br><em>On the date of publication,&nbsp;<a href=\"https:\/\/www.barchart.com\/news\/authors\/62\/darren-carlat\">Darren Carlat<\/a>&nbsp;had a position in:&nbsp;<a href=\"https:\/\/www.barchart.com\/quotes\/CTZ24\">CTZ24<\/a>&nbsp;. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy&nbsp;<a href=\"https:\/\/www.barchart.com\/terms#disclosure\">here<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>SpreadEdge Capital specializes in seasonal spread trading across a wide variety of commodity markets. A spread trade is the simultaneous purchase and sale of the same commodity with different delivery [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":1950,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,16],"tags":[],"class_list":["post-1946","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-inside-futures","category-softs","entry","has-media"],"_links":{"self":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/posts\/1946","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/comments?post=1946"}],"version-history":[{"count":1,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/posts\/1946\/revisions"}],"predecessor-version":[{"id":1951,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/posts\/1946\/revisions\/1951"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/media\/1950"}],"wp:attachment":[{"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/media?parent=1946"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/categories?post=1946"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jwilsonpaving.ca\/wilsonfarms\/wp-json\/wp\/v2\/tags?post=1946"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}