NEW YORK: Speculators reduced their net long positions across the soft commodities complex in the week to March 23, cutting their bullish bets in sugar, coffee, cocoa and cotton futures, data from the US Commodity Futures Trading Commission showed on Friday.
Money managers and hedge funds cut their long position in sugar by 16,377 contracts for the period to a total of 115,014 contracts. Raw sugar futures touched a three-month low on Thursday hit by longs liquidation. Funds cut their long position in arabica coffee futures by 6,637 contracts to 21,587 contracts.
"There was, undoubtable, some further fund liquidation as they continue to take a risk-on attitude with the macro remaining weak," said a European broker.
"A growing realization that the road to the end of the pandemic is going to be very long has had many reassessing the long-term impact on the global economy."
Arabica prices, however, recovered some ground in the end of the week underpinned by the prospect of a much smaller production in top grower Brazil.
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