cocoa futures news

cocoa futures news

May 12th, 2017

Commodity players in the exchange traded products market are proving chocaholics.

For 10 consecutive weeks, the investors in exchange traded products, or ETPs, have raised their exposure to cocoa.

That has lifted assets investment in cocoa ETPs to $83m, up from some $27m, according to data from ETF Securities, which claims a 99% share of trading in the exchange traded products in ags in Europe.

That has made the market more valuable than that in corn, one of the biggest markets for futures investors, as well as those in cotton, soybeans and sugar – if lagging the $150m invested in wheat EPTs.

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crude oil futures news

crude oil futures news

May 5th, 2017

Crude oil futures prices fell to five-month lows on Friday on concerns about a persistent glut despite assurances from Saudi Arabia that Russia is ready to join OPEC in extending supply cuts.

U.S. West Texas Intermediate (WTI) crude oil futures fell more than 3 percent in early trading to less than $44 a barrel, the lowest since Nov 14. It fell 4 percent on Thursday.

Benchmark Brent also fell 3 percent to below $47, its lowest since Nov. 30, which was the date the Organization of the Petroleum Exporting Countries (OPEC) triggered a rally when it said it would cut production in the first half of 2017.

Both benchmarks trimmed losses to trade near Thursday’s close by 1320 GMT after Saudi Arabia’s OPEC Governor Adeeb Al-Aama told Reuters that OPEC and non-OPEC nations were close to agreeing a deal on supply cuts.

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commodity investing 101

commodity investing 101

November 21st, 2016

Hedge funds turned bearish on agricultural commodities at the fastest rate in nine months, provoking hopes in grains that selling pressure may be spent for now – but spurring worries in sugar of “much lower” prices.

Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to sugar, by 151,096 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows.

That represented the biggest reduction since February in the net long – the extent to which long bets, which profit when values rise, exceed short holdings, which benefit when prices fall.

And it came in a week in which ag bulls suffered two notable blow – the first from the rise in the dollar, following the election of Donald Trump as US president, and the second from larger-than-expected official estimates for US corn and soybean crops.

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St Elmo Steak House

St Elmo Steak House

May 23rd, 2016

Commodity hedge funds raised bets on rising agricultural commodity prices to the highest in nearly two years, provoking concerns of a sell-off in the off – particularly in sugar, in which bullish betting hit a record high.

Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to sugar, by nearly 65,000 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows.

The buying took the net long – the extent to which long bets, which profit when values rise, exceed short holdings, which benefit when prices fall – nearly to 680,000 contracts, the highest since June 2014, and supporting talk around in the market of funds moving cash into ags.

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commodity investing 101

commodity investing 101

October 5th, 2015

Commodity investing funds undertook a sharp wave of short-covering as pessimism over agricultural commodity prices waned, particularly in sugar, in which they turned more positive on prospects at the fastest pace in 15 months.

Managed money, a proxy for speculators, lifted its net long position in futures and options in the top 13 US-traded agricultural commodities, from corn to cotton, by 100,285 contracts in the week to last Tuesday, analysis of data from the Commodity Futures Trading Commission regulator shows.

The shift took the net long – the extent to which long bets, which profit when values rise, exceed short holdings, which benefit when prices fall – to 125,025 contracts.

And it was fuelled by a cut in short positions, of more than 90,000 lots, amid recovering markets for many agricultural commodities, with only cattle and cocoa among main contracts showing losses during the week.

The closure of short positions was evident in a cut to 1.38m lots, from 1.42m contracts, in speculators’ open interest – the total number of live contracts they hold.

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El Nino here for rest of 2015

On September 15, 2015, in Commodity Futures News Report, by Infinity Trading
commodity investing 101

commodity investing 101

September 15th, 2015

The El Nino will not fade until next year, official meteorologists in Australia warned, even as real estate experts rated a continuation in the weather pattern a key fear for farmers in New Zealand, the top milk exporting country.

Australia’s official weather bureau, which two weeks ago rated the El Nino the strongest since 1997-98, on Tuesday gave its first detailed forecast of when the weather pattern might fade – putting its demise into 2016.

“El Niño continues to strengthen,” the Bureau of Meteorology said.

Evidence from factors such as trade winds and Pacific water temperatures “indicate the El Niño is unlikely to end before early 2016″.

Indeed, “all models suggest the event will peak around the end of the year [2015], followed by rapid weakening” heading into the southern hemisphere autumn – ie, early in 2016.

“It is too early to accurately determine the likely pattern beyond [southern hemisphere] autumn, but a continued El Niño is considered the least likely outcome at this stage,” the bureau added.

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commodity investing 101

commodity investing 101

August 5th, 2015

Commodity hedge funds, having been bloodied by buying grains as the market tumbled, followed up with widespread selling in ags, turning more bearish on soft commodities and livestock as well as the likes of corn and wheat.

Managed money, a proxy for speculators, slashed its net long position in futures and options in the top 13 US-traded agricultural commodities, from cotton to cattle, by nearly 135,000 contracts in the week to last Tuesday, according to data from the Commodity Futures Trading Commission regulator.

The cut in the net long – the extent to which long positions, which profit when values rise, exceed short bets, which benefit when prices fall – was the second largest over the past two years.

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live cattle futures

live cattle futures

July 17th, 2015

US cattle slaughter is falling, thanks to ample pasture and low beef prices, further reducing expectations for what is already set to be the slowest year in beef production since 1993.

In a monthly livestock outlook report, the USDA reduced beef production estimates over the second quarter of 2015 due to lighter than expected steer and heifer slaughter during May and June.

However, the USDA also warned with July 4 barbecues finished “consumers appear to be backing away from beef at its recent record prices”.

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Commodity Futures Sink To 12-Year Low

On January 14, 2015, in Commodity Futures News Report, by Infinity Trading
commodity futures

commodity futures

January 14th, 2015

Commodity futures slumped to a 12-year low, led by the biggest plunge in copper since 2011, after a report from the World Bank fanned concerns of a global economic slowdown.

Copper tumbled 5.7 percent to $5,526 a metric ton on the London Metal Exchange as of 12:29 p.m., set for a sixth day of losses. Nickel, zinc and silver erased more than 2 percent. Oil reversed earlier declines, with West Texas Intermediate trading little changed at $45.93 a barrel. The Bloomberg Commodity Index of 22 energy, agriculture and metal products slid 0.8 percent to 100.45, the lowest since 2002.

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futures brokers

futures brokers

September 29th, 2014

Intercontinental Exchange Inc. (ICE) eliminated the Liffe name and incorporated cocoa, robusta coffee, white sugar and feed wheat futures and options into ICE Futures Europe, owner of the Brent crude contract.

ICE, based in Atlanta, has the dominant position in the softs markets, also owning ICE Futures U.S. in New York where arabica coffee, cocoa and raw sugar trade. ICE Futures Europe now has the biggest share of the cocoa market with 259,410 futures outstanding today compared with 209,687 contracts on ICE Futures U.S., according to data compiled by Bloomberg. ICE’s Brent oil futures have 1.4 million contracts outstanding.

“All softs contracts are now under one roof,” said Michael McDougall, a senior vice president in New York at Societe Generale SA’s Newedge Group, a member of both ICE Europe and ICE Futures U.S. “It seems to be the general trend with futures exchanges that we’re seeing a concentration. That means less competition. Whether it’s a good or bad thing, time will tell.”

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