Live Cattle and Feeder Cattle continue to be at their highest hedge fund positions over the past 52 weeks. Corn and Lean Hogs are very near their highs.
Spread Edge 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. SpreadEdge publishes a weekly Newsletter that provides several seasonal spread trade opportunities every week.
Overview
Each week the SpreadEdge Newsletter documents an extensive list of seasonal, technical and fundamental indicators for the various commodity markets. This article will focus on hedge fund position estimates for Grains and Meats and dives deeper into Corn, Soybean Meal, Live Cattle, and Feeder Cattle.
Hedge Fund Position Estimates
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. Published every Friday at 3:30 PM Eastern Time, the COT report reflects positions held as of the previous Tuesday's closing business hours. Peak Trading Research assesses the latest COT report, examining alterations in price and open interest to provide an appraisal of net fund positioning daily.
- Live Cattle and Feeder Cattle are at their highest hedge fund position estimates for the past 52 weeks. Corn and Lean Hogs are near their highest.
- Soybean Meal is near its lowest hedge fund position estimates over the past 52 weeks.
Technical Analysis
- Live Cattle is making its 3rd attempt to break out to new highs. Last week LC closed right on overhead resistance.
- Feeder Cattle is very near recent highs.
- Corn broke through the downward trendline a few weeks ago but does not look to be in any hurry to continue higher. The high hedge fund positions and the near 3 year low prices are disconnected.
- Soybean Meal continues to drift lower down the downward channel with no apparent end in sight.
More Information
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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. In addition, spread trade recommendations and follow-up on open trades is also provided. For a free copy of the Weekly Newsletter, please send an email to info@SpreadEdgeCapital.com
Darren Carlat
SpreadEdge Capital, LLC
(214) 636-3133
Darren@SpreadEdgeCapital.com
Disclaimer
SpreadEdge Capital, LLC is registered as a Commodity Trading Advisor with the Commodity Futures Trading Commission and is an NFA member. Past performance is not indicative of future results. Futures trading is not suitable for all investors, The risk associated with futures trading is substantial. Only risk capital should be used for these investments because you can lose more than your original investment. This is not a solicitation.
