Bullish Commodity Futures Positions Cut by Funds

For the first time in nearly two months, professional fund managers cut back on bullish commodity futures speculative positions just after China revised their growth target lower.  But even as China has reduced their growth forecast, the US equities markets continue to climb and the EU is finding a way around the Greek debt crisis.

Commodity Futures Trading Commission weekly data shows specifically money-managers reduced their bullish positions just slightly over 1% across a broad spectrum of 18 futures and options markets.  It was copper and oil markets leading the way on the commodity markets that have been cut by the funds.

Chris Hildebrand, vice-president of trading for HighGround Trading Group in Chicago, stated today regarding the current commodity futures situation, “We saw a lot of profit taking last week and some are still waiting for deeper corrections in commodities before they re-enter the markets. Low volume is becoming the norm especially in the equities markets.  I think we’ll see more of the “Risk On” type of mentality coming soon. It would be smart to start taking positions on dips in commodities across the board, but as always, keep risk in check and don’t load the boat!”

While the commodity futures markets digest the current supply vs. demand after this news, I must say soybean futures and soymeal futures have been resilient in their uptrends.  I cannot say the same for corn futures and wheat futures – no real direction, or follow-through.

For the commodity futures markets we trade, sugar futures have just rolled over to a down trend, and most other markets are either taking a break from their trend, or stalling directionless.  I’m being as patient as I can… I’m looking for trends to follow.


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