COT: Coffee Spill

The COT report is published each week and includes observations on charts of markets that exhibit interesting ownership characteristics and/or changes in ownership characteristics. This week’s update includes observations on Coffee.

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  • Record positioning in Platinum…again
  • Record positioning in Coffee and extreme 4 week position change
  • Record positioning in Kiwi (NZD)

52 Week Ownership Profile Extremes – U.S. Dollar Index, New Zealand Dollar, Canadian Dollar, Nikkei, Platinum, Soybean Oil, Lean Hogs, Coffee

13 Week Volume Highs – None

Currencies Indexes Interest Rates Metals 
US Dollar100S&P 5004930 Yr US Bond12Gold12
Euro2NASDAQ 1001010 Year US Note77Silver16
British Pound31Dow615 Year US Note55Copper12
Swiss Franc51Nikkei162 Year US Note0Platinum67
Japanese Yen24Eurodollar78
Canadian Dollar61
Australian Dollar16
New Zealand Dollar37
Mexican Peso10
Energies Agriculture Meats Softs 
Crude Oil0Wheat53Lean Hogs63Coffee94
Heating Oil4Hard Red Winter Wheat22Live Cattle49Cotton0
RBOB Gas4Corn47Feeder Cattle0Frozen OJ0
Natural Gas100Oats65Cocoa22
Soybean Oil29
Soybean Meal2
Rough Rice29

The COT Index is the difference between net speculative positioning and net commercial positioning measured over a 52 week percentile.  A reading of 100 indicates that the difference in positioning is the greatest it has been in 52 weeks with speculators buying and commercials selling.  A reading of 0 indicates that the difference in positioning is the greatest it has been in 52 weeks with speculators selling and commercials buying.  Speculators tend to be on the wrong side at the turn and commercials the correct side.  Use of the index is covered closely in detail in my book.

Latest CFTC Release dated July 3rd, 2018

Non Commercials (speculators) – Red

Commercials – Blue

Small Speculators – Black

COTDiff (COT Index) – Black

52 week Percentile (COT Diff) – Gray

Coffee ICEUS Continuous Contract

The ownership profile in Coffee is at a record.  Simply, the extreme speculative short position and extreme commercial long position warns of a price low.

Coffee ICEUS Continuous Contract

The change in positions over a 4 week period in Coffee is also at a record!  Extreme speculative selling and commercial buying suggests capitulation and therefore potential for a price low.