Funds trim positions in agri-commodities amid bearish outlook, uncertainty

FUNDS are trimming or adjusting their positions in publicly traded agri-commodities such as sugar, coffee and cocoa, in a mix of profit taking and cautious sentiment as a bearish outlook clouds the sector.

Observers that The Business Times spoke to pointed to recent Commitments of Traders (COT) reports – a weekly round-up of positions of futures markets participants – which showed that certain agri-commodities have suffered a pullback from funds, particularly in terms of their long positions. 

The most recent COT report for the seven days ended Mar 5 showed declines in funds’ net positions in corn, wheat and soybeans on the Chicago Board of Trade (CBOT), as well as cocoa and coffee futures on the Intercontinental Exchange.