Quick Update On Futures Positioning
The latest Commitments of Traders data showed a couple of large changes. "Smart money" hedgers dumped a large number of contracts in coffee, hogs and soybeans. The latter is coming off one of their largest net long positions in years, however, and is not especially troubling.
They remain extremely short precious metals, with gold and silver positions hanging around their most net short in years. They also increased bets against sugar, to a level that has tended to stop rallies cold in that contract.
The most promising among them is cotton, as we've noted the past couple of weeks. Hedger positions are near all-time record highs, and that has preceded some good gains in the contract and its associated ETFs like BAL.