Soft Commodities Speculators boost their Coffee bets to best level in 26-Weeks

April 15, 2023

By InvestMacro

Here are the latest charts and statistics for the Commitment of Traders (COT) reports data published by the Commodities Futures Trading Commission (CFTC).

The latest COT data is updated through Tuesday April 11th and shows a quick view of how large traders (for-profit speculators and commercial entities) were positioned in the futures markets.

Weekly Speculator Changes led by Corn & Sugar

The COT soft commodities markets speculator bets were higher this week as seven out of the eleven softs markets we cover had higher positioning while the other four markets had lower speculator contracts.


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Leading the gains for the softs markets was Corn (17,619 contracts) with Sugar (13,137 contracts), Coffee (12,229 contracts), Live Cattle (8,442 contracts), Cotton (3,464 contracts), Soybean Oil (2,969 contracts) and Soybean Meal (2,810 contracts) also showing positive weeks.

The markets with the declines in speculator bets this week were Wheat (-5,883 contracts) with Lean Hogs (-4,303 contracts), Soybeans (-4,999 contracts) and Cocoa (-332 contracts) also registering lower bets on the week.

Coffee bets rebound to best level in 26-Weeks

Highlighting the COT soft commodities data this week is the rebound in the Coffee speculator’s positioning. The large speculator bets for Coffee jumped this week by over +12,000 contracts after having fallen in the previous two weeks. Coffee’s speculative positioning is showing positive trends again with the net position back in bullish territory for each of the past ten weeks. This follows a streak of thirteen straight weeks of bearish Coffee positions that took place from November 8th to January 31st.

Coffee speculative bets had experienced a strong few years with positions rising strongly in the second half of 2020 and maintaining that momentum through 2021 and most of 2022. The end of 2022 saw the shine fall off the Coffee positions and the Coffee price as well with the Coffee futures price dropping over 35 percent from September to January.

The Coffee price hit a recent bottom in January and has been back on a bullish trend with prices gaining by more than 30 percent since that bottom compared to this week’s close. This week saw the Coffee futures price rise for a second straight week and with a 2-week total gain of over +10 percent.

The speculator’s net position, meanwhile, is now at the most bullish level of the past 26 weeks, dating back to October 11th of 2022.


Data Snapshot of Commodity Market Traders | Columns Legend
Apr-11-2023OIOI-IndexSpec-NetSpec-IndexCom-NetCOM-IndexSmalls-NetSmalls-Index
WTI Crude1,875,14043235,63219-255,4118219,77932
Gold476,56725192,74562-216,5484023,80340
Silver142,6992923,71852-36,2555012,53736
Copper209,50150-4,30325-1,217725,52053
Palladium12,29088-7,07307,491100-41817
Platinum60,1154113,33346-18,511555,17837
Natural Gas1,355,67279-140,89516111,1818429,71451
Brent146,90511-42,6102237,056745,55484
Heating Oil268,008239,69444-30,7705321,07671
Soybeans716,90631179,34660-148,51145-30,83520
Corn1,338,48419103,30943-45,28365-58,02619
Coffee192,988724,87753-25,2415136417
Sugar992,08669259,78883-317,3081257,52079
Wheat391,89961-66,682562,318924,36494

 


Strength Scores led by Cocoa & Live Cattle

COT Strength Scores (a normalized measure of Speculator positions over a 3-Year range, from 0 to 100 where above 80 is Extreme-Bullish and below 20 is Extreme-Bearish) showed that Cocoa (98 percent), Live Cattle (84 percent) and Sugar (83 percent) lead the softs markets this week are all in Extreme-Bullish levels.  Soybean Meal (68 percent) and Soybeans (60 percent) come in as the next highest in the weekly strength scores.

On the downside, Lean Hogs (0 percent), Soybean Oil (2 percent), Wheat (5 percent) and the Cotton (6 percent) come in at the lowest strength levels currently and are in Extreme-Bearish territory (below 20 percent).

Strength Statistics:
Corn (43.2 percent) vs Corn previous week (41.0 percent)
Sugar (83.3 percent) vs Sugar previous week (78.7 percent)
Coffee (52.9 percent) vs Coffee previous week (40.4 percent)
Soybeans (59.6 percent) vs Soybeans previous week (61.6 percent)
Soybean Oil (2.0 percent) vs Soybean Oil previous week (0.0 percent)
Soybean Meal (68.1 percent) vs Soybean Meal previous week (66.7 percent)
Live Cattle (84.2 percent) vs Live Cattle previous week (74.7 percent)
Lean Hogs (0.0 percent) vs Lean Hogs previous week (3.9 percent)
Cotton (6.2 percent) vs Cotton previous week (3.6 percent)
Cocoa (98.3 percent) vs Cocoa previous week (98.7 percent)
Wheat (5.5 percent) vs Wheat previous week (10.4 percent)

 

Sugar & Coffee top the 6-Week Strength Trends

COT Strength Score Trends (or move index, calculates the 6-week changes in strength scores) showed that Sugar (12 percent) and Coffee (9 percent) lead the past six weeks trends for soft commodities. Soybeans (8 percent) and Cocoa (6 percent) are the next highest positive movers in the latest trends data.

Soybean Oil (-23 percent) leads the downside trend scores currently with Soybean Meal (-23 percent), Lean Hogs (-18 percent) and Live Cattle (-14 percent) following next with lower trend scores.

Strength Trend Statistics:
Corn (-5.1 percent) vs Corn previous week (-25.2 percent)
Sugar (12.4 percent) vs Sugar previous week (4.6 percent)
Coffee (8.7 percent) vs Coffee previous week (0.3 percent)
Soybeans (8.2 percent) vs Soybeans previous week (-3.5 percent)
Soybean Oil (-22.5 percent) vs Soybean Oil previous week (-30.3 percent)
Soybean Meal (-22.7 percent) vs Soybean Meal previous week (-32.8 percent)
Live Cattle (-14.2 percent) vs Live Cattle previous week (-20.3 percent)
Lean Hogs (-18.4 percent) vs Lean Hogs previous week (-19.6 percent)
Cotton (-3.8 percent) vs Cotton previous week (-2.8 percent)
Cocoa (5.7 percent) vs Cocoa previous week (18.1 percent)
Wheat (0.1 percent) vs Wheat previous week (-11.1 percent)


Individual Soft Commodities Markets:

CORN Futures:

CORN Futures COT ChartThe CORN large speculator standing this week was a net position of 103,309 contracts in the data reported through Tuesday. This was a weekly boost of 17,619 contracts from the previous week which had a total of 85,690 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish with a score of 43.2 percent. The commercials are Bullish with a score of 65.4 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 19.0 percent.

CORN Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:25.147.98.6
– Percent of Open Interest Shorts:17.451.313.0
– Net Position:103,309-45,283-58,026
– Gross Longs:336,195640,896115,312
– Gross Shorts:232,886686,179173,338
– Long to Short Ratio:1.4 to 10.9 to 10.7 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):43.265.419.0
– Strength Index Reading (3 Year Range):BearishBullishBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-5.14.38.0

 


SUGAR Futures:

SUGAR Futures COT ChartThe SUGAR large speculator standing this week was a net position of 259,788 contracts in the data reported through Tuesday. This was a weekly boost of 13,137 contracts from the previous week which had a total of 246,651 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 83.3 percent. The commercials are Bearish-Extreme with a score of 12.1 percent and the small traders (not shown in chart) are Bullish with a score of 79.0 percent.

SUGAR Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:34.439.010.9
– Percent of Open Interest Shorts:8.270.95.1
– Net Position:259,788-317,30857,520
– Gross Longs:341,373386,564108,381
– Gross Shorts:81,585703,87250,861
– Long to Short Ratio:4.2 to 10.5 to 12.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):83.312.179.0
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:12.4-15.321.4

 


COFFEE Futures:

COFFEE Futures COT ChartThe COFFEE large speculator standing this week was a net position of 24,877 contracts in the data reported through Tuesday. This was a weekly increase of 12,229 contracts from the previous week which had a total of 12,648 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 52.9 percent. The commercials are Bullish with a score of 50.8 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 17.0 percent.

COFFEE Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:23.646.34.4
– Percent of Open Interest Shorts:10.759.44.2
– Net Position:24,877-25,241364
– Gross Longs:45,50389,3398,467
– Gross Shorts:20,626114,5808,103
– Long to Short Ratio:2.2 to 10.8 to 11.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):52.950.817.0
– Strength Index Reading (3 Year Range):BullishBullishBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:8.7-7.4-12.0

 


SOYBEANS Futures:

SOYBEANS Futures COT ChartThe SOYBEANS large speculator standing this week was a net position of 179,346 contracts in the data reported through Tuesday. This was a weekly decline of -4,999 contracts from the previous week which had a total of 184,345 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 59.6 percent. The commercials are Bearish with a score of 45.4 percent and the small traders (not shown in chart) are Bearish with a score of 20.4 percent.

SOYBEANS Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:29.944.16.5
– Percent of Open Interest Shorts:4.964.810.8
– Net Position:179,346-148,511-30,835
– Gross Longs:214,620316,23446,749
– Gross Shorts:35,274464,74577,584
– Long to Short Ratio:6.1 to 10.7 to 10.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):59.645.420.4
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:8.2-10.616.1

 


SOYBEAN OIL Futures:

SOYBEAN OIL Futures COT ChartThe SOYBEAN OIL large speculator standing this week was a net position of -6,356 contracts in the data reported through Tuesday. This was a weekly boost of 2,969 contracts from the previous week which had a total of -9,325 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 2.0 percent. The commercials are Bullish-Extreme with a score of 98.1 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 1.1 percent.

SOYBEAN OIL Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:14.858.76.4
– Percent of Open Interest Shorts:16.157.06.7
– Net Position:-6,3568,180-1,824
– Gross Longs:71,655284,39230,877
– Gross Shorts:78,011276,21232,701
– Long to Short Ratio:0.9 to 11.0 to 10.9 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):2.098.11.1
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-22.524.9-33.9

 


SOYBEAN MEAL Futures:

SOYBEAN MEAL Futures COT ChartThe SOYBEAN MEAL large speculator standing this week was a net position of 115,912 contracts in the data reported through Tuesday. This was a weekly lift of 2,810 contracts from the previous week which had a total of 113,102 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish with a score of 68.1 percent. The commercials are Bearish with a score of 32.6 percent and the small traders (not shown in chart) are Bearish with a score of 29.4 percent.

SOYBEAN MEAL Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:31.438.211.1
– Percent of Open Interest Shorts:4.868.96.9
– Net Position:115,912-134,05218,140
– Gross Longs:136,621166,24648,190
– Gross Shorts:20,709300,29830,050
– Long to Short Ratio:6.6 to 10.6 to 11.6 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):68.132.629.4
– Strength Index Reading (3 Year Range):BullishBearishBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-22.719.729.4

 


LIVE CATTLE Futures:

LIVE CATTLE Futures COT ChartThe LIVE CATTLE large speculator standing this week was a net position of 94,616 contracts in the data reported through Tuesday. This was a weekly gain of 8,442 contracts from the previous week which had a total of 86,174 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 84.2 percent. The commercials are Bearish-Extreme with a score of 14.8 percent and the small traders (not shown in chart) are Bullish with a score of 51.1 percent.

LIVE CATTLE Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:43.126.410.5
– Percent of Open Interest Shorts:14.952.612.5
– Net Position:94,616-87,749-6,867
– Gross Longs:144,36288,30135,140
– Gross Shorts:49,746176,05042,007
– Long to Short Ratio:2.9 to 10.5 to 10.8 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):84.214.851.1
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBullish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-14.213.68.3

 


LEAN HOGS Futures:

LEAN HOGS Futures COT ChartThe LEAN HOGS large speculator standing this week was a net position of -24,092 contracts in the data reported through Tuesday. This was a weekly fall of -4,303 contracts from the previous week which had a total of -19,789 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 0.0 percent. The commercials are Bullish-Extreme with a score of 99.6 percent and the small traders (not shown in chart) are Bullish-Extreme with a score of 100.0 percent.

LEAN HOGS Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:28.536.212.2
– Percent of Open Interest Shorts:39.026.711.2
– Net Position:-24,09221,6232,469
– Gross Longs:65,09782,73327,981
– Gross Shorts:89,18961,11025,512
– Long to Short Ratio:0.7 to 11.4 to 11.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):0.099.6100.0
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBullish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-18.415.322.5

 


COTTON Futures:

COTTON Futures COT ChartThe COTTON large speculator standing this week was a net position of -3,279 contracts in the data reported through Tuesday. This was a weekly gain of 3,464 contracts from the previous week which had a total of -6,743 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 6.2 percent. The commercials are Bullish-Extreme with a score of 92.4 percent and the small traders (not shown in chart) are Bearish-Extreme with a score of 17.4 percent.

COTTON Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:27.548.86.7
– Percent of Open Interest Shorts:29.347.16.6
– Net Position:-3,2793,057222
– Gross Longs:51,25590,94112,514
– Gross Shorts:54,53487,88412,292
– Long to Short Ratio:0.9 to 11.0 to 11.0 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):6.292.417.4
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBearish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:-3.83.9-4.7

 


COCOA Futures:

COCOA Futures COT ChartThe COCOA large speculator standing this week was a net position of 59,913 contracts in the data reported through Tuesday. This was a weekly fall of -332 contracts from the previous week which had a total of 60,245 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bullish-Extreme with a score of 98.3 percent. The commercials are Bearish-Extreme with a score of 0.4 percent and the small traders (not shown in chart) are Bearish with a score of 48.2 percent.

COCOA Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:36.334.74.7
– Percent of Open Interest Shorts:19.153.53.3
– Net Position:59,913-65,0755,162
– Gross Longs:126,337120,83816,466
– Gross Shorts:66,424185,91311,304
– Long to Short Ratio:1.9 to 10.6 to 11.5 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):98.30.448.2
– Strength Index Reading (3 Year Range):Bullish-ExtremeBearish-ExtremeBearish
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:5.7-6.77.6

 


WHEAT Futures:

WHEAT Futures COT ChartThe WHEAT large speculator standing this week was a net position of -66,682 contracts in the data reported through Tuesday. This was a weekly decline of -5,883 contracts from the previous week which had a total of -60,799 net contracts.

This week’s current strength score (the trader positioning range over the past three years, measured from 0 to 100) shows the speculators are currently Bearish-Extreme with a score of 5.5 percent. The commercials are Bullish-Extreme with a score of 91.8 percent and the small traders (not shown in chart) are Bullish-Extreme with a score of 94.2 percent.

WHEAT Futures StatisticsSPECULATORSCOMMERCIALSSMALL TRADERS
– Percent of Open Interest Longs:28.034.410.8
– Percent of Open Interest Shorts:45.018.59.7
– Net Position:-66,68262,3184,364
– Gross Longs:109,545134,82642,293
– Gross Shorts:176,22772,50837,929
– Long to Short Ratio:0.6 to 11.9 to 11.1 to 1
NET POSITION TREND:
– Strength Index Score (3 Year Range Pct):5.591.894.2
– Strength Index Reading (3 Year Range):Bearish-ExtremeBullish-ExtremeBullish-Extreme
NET POSITION MOVEMENT INDEX:
– 6-Week Change in Strength Index:0.1-3.613.7

 


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*COT Report: The COT data, released weekly to the public each Friday, is updated through the most recent Tuesday (data is 3 days old) and shows a quick view of how large speculators or non-commercials (for-profit traders) were positioned in the futures markets.

The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators) as well as their open interest (contracts open in the market at time of reporting). See CFTC criteria here.