Cotton
Sometimes the COT doesn’t tell us much…this is not one of those times. Large speculators currently hold a net short of 52,415 contracts combined F&O, just 46 contracts shy of their largest net short position from August 6 of 2019. These shorts currently are 32% of total open interest. From a seasonality standpoint, this timing is not lost on us either. This is definitely something to keep an eye on…when the tide turns it could be a tidal wave.
Rice
Admittedly, we don’t pay much attention to the Rice COT as neither the specs or commercials appear to be a significant price driver. As mentioned above for cotton, there are times that the COT report doesn’t tell us much, and in the case of rice, this is one of those times.
