New CFTC Report Reveals...Nothing Much

oil reserves

The CFTC released its first expanded Commitments of Traders (COT) report on Friday. The response to the release was blase, says Reuters.

In theory at least, Friday’s report showed that managed money provided a base for higher commodity prices by being net long on some markets that commercial producers were short.

For instance, managed money was net long on 62,004 contracts of NYMEX crude oil, versus a net short of 125,206 lots held by commercials.

Managed money was also net long on 902 contracts of copper; 57,557 lots of soybeans and 146,545 contracts of sugar. Producers were net short on 32,924 lots of copper; 133,775 contracts of soybeans and 194,537 lots of sugar.

The CFTC has vowed to clamp down on excessive speculation in the markets it regulates and had won praise in the run-up to the release of the revamped COT report.

But trade reaction on Friday to the report was lukewarm at best.

This new expanded version of the report breaks out traders into four categories: Producer/Merchant/Processor/User, swap dealers, managed money and other reportables. It’s part of the CFTC’s effort to increase transparency in the market as a way to quell rumours of speculation affecting the price.

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