Reuters – Speculators switched to a net short position in U.S. cotton contracts in the week to October 2, regulatory data showed on Friday, the biggest such position in four months after the futuresmarket fell to a two-month low.
Noncommercial traders of ICE Futures. U.S. cotton futures and options cut 13,605 contracts, moving to a net short position of 3,556 contracts, as they unwound bullish bets and seasonal selling started ahead of the Northern Hemisphere harvest. Expectations are for a record surplus and selling was on the increase on concerns China will start to unload some of its huge stockpile.
Speculators cut their net short position in raw sugar by a whopping 18,624 lots, a drop of more than 93 percent, bringing it to a small 1,289 lots, the U.S. Commodity Futures Trading Commission (CFTC) data showed.
The move took place as the futures market soared about 7 percent during the first two trading sessions of the fourth quarter. The benchmark contract jumped to a two-month high following a sizeable delivery against the now-expired October contract with support seen coming from the weak U.S. dollar.
The noncommercial dealers cut their net long position in cocoa futures and options by 1,656 lots to 15,249 lots, while they trimmed their net short position in arabica coffee by 6,641 lots to 12,068 lots, CFTC data showed.
(Reporting by Marcy Nicholson. Editing by Andre Grenon)