Hedge funds are proving very wary about rebuilding short bets on arabica coffee futures and options, GrainPriceNews analysis of Commodity Futures Trading Commission data shows.
This amid lingering concerns over damage to the 2022 Brazilian crop from drought and frost last year.
But they are well ahead on selling cocoa and cattle.
| Managed money’s most undersold ags |
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| Contract | Number of short bets | As % of average since 2006 |
| Arabica coffee | 5,521 | -83% |
| Soymeal | 9,090 | -67% |
| Cotton | 7,941 | -58% |
| Hard red winter wheat | 12,851 | -56% |
| Corn | 71,421 | -51% |
| Soybeans | 26,095 | -46% |
| Soyoil | 26,152 | -43% |
| Soft red winter wheat | 63,309 | -31% |
| Lean hogs | 20,708 | -13.2% |
| Raw sugar | 90,613 | -4.5% |
| Live cattle | 55,413 | +109% |
| Feeder cattle | 15,777 | +149% |
| Cocoa | 94,417* | +159% |
| Total ags | 499,308 | -19.0% |
| Of which grains and oilseeds | 208,918 | -46% |
| Softs | 198,492 | +13.1% |
| Livestock | 91,898 | +63% |
| All data in contracts. *= record high |
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