The Commitment of Traders (COT) report is a valuable tool in gauging market sentiment and near-term market direction. Data on corn futures’ trading reveal that companies on the consumption end of that industry have been hedging more actively in the recent past than have companies on the production end. This likely reflects commercial buyers’ fear of rising prices. At the same time, another trading segment, money managers, have been increasing net positions. This trading activity indicates a near-term bullish outlook for corn.
- Regions: Global
- Authors: Radhika Kamath , Amitesh Kumar
- Products: Datastream
- Keywords: commodities
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