Futures price rally ignites producer sales in energy

CIT 04.03.18

COT Disaggregated Futures and Options Ags 04.03.18

COT Disaggregated Futures and Options Energy Softs 04.03.18

Good afternoon,


With futures prices moving to the highs in crude oil for the last few weeks it has awakened the producer short sellers again pushing combined producer and swap shorts to a new record high of just under 1.5 million contracts.


What are the bean producers worrying about?  Certainly taking to opportunity to sell the rally in the wake of the acreage report as producers added 29.3K in new shorts after selling a total of 94.7 over the last 4 weeks and since the rally began in Jan the producer short category has added roughly 276K in new shorts in a rising market locking in sales.  In a year where carry out is 80% above last year they have been able to locked in sales 3 months earlier than last year.  Which has to make the recent trade worries seem a little more bearable.


Have a good weekend,