Mumbai, 14 Jan (Commoditiescontrol): The latest CFTC Commitment of Traders (COT) report for soybean meal, dated January 7, 2025, reveals a significant reduction in bearish positions by Managed Money. The net short position in this category decreased by 10,208 contracts over the week, reflecting a cautious shift in market sentiment.
Key Highlights
Managed Money’s long positions increased slightly to 61,566 contracts, while short positions saw a sharp drop of 9,454 contracts, bringing the net position to -58,624 contracts.
Spreading activity rose by 1,921 contracts, indicating hedging against anticipated price volatility.
Total open interest in the market declined by 24,456 contracts to 607,004, suggesting reduced participation or possible market consolidation.
Open Interest Breakdown
Managed Money now accounts for 10.1% of total open interest in long positions and 19.8% in short positions, both showing shifts from the previous week. This drop in short exposure aligns with the declining number of traders holding short positions in this category, down from 60 to 50.
Market Sentiment and Implications
The reduction in bearish bets signals weakening bearish sentiment in the soybean meal market. While Managed Money remains net short, the notable decrease in short positions and marginal increase in longs reflect a move toward neutral to cautiously bullish positioning.
Increased spreading activity suggests traders are bracing for short-term price volatility, possibly driven by fluctuating supply-demand dynamics. Meanwhile, the overall decline in open interest could indicate a period of consolidation ahead of critical market events or reports.
Outlook
The shift in Managed Money’s positioning points to a more balanced outlook for the soybean meal market. With bearish pressure easing, price stability may improve in the near term.
(By Commoditiescontrol Bureau; +91-9820130172)
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