Financial Advisor

Funds reduce long positions on lower growth and Greece

Last week Hedge Funds and Money managers cut their net-long positions in 18 U.S. commodities by 13 percent to 1.13 million futures and options contracts in the seven-days ended June 21, data from the Commodity Futures Trading Commission show.

That’s the biggest decline since May 10 and managers reduced bullish bets for the third week in a row.

Funds slashed bets on rising agricultural prices by the most in three months, led by declines in holdings of wheat and coffee, as supply concerns eased amid signs the global economy may slow.

Speculators reduced their net-long position in 11 U.S. farm goods by 12 percent to 674,396 futures and options contracts in the week ended June 21, government data compiled by Bloomberg show. That’s the biggest drop since mid-March. Investors turned net-short, or bet on declines, on wheat for the first time since late November. Coffee holdings tumbled 65 percent.

Wheat prices have tumbled 16 percent in June, heading for the biggest monthly drop since October 2008. Investors held a net-short position of 8,570 contracts as of June 21, compared with net-long holdings of 7,558 contracts the previous week.
 Background information: The Commitments of Traders is a report issued by the Commodity Futures Trading Commission every Friday with data from the previous Tuesday. It comprises the holdings of participants in various U.S. futures markets split into "commercial" and "non commercial" holdings. The non commercial or speculative holding are typically institutional investors such as hedge funds and CTAs. The above chart tracks a total of 27 different commodities split into sectors. 

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