Agricultural Economics Department

 

Date of this Version

11-29-2017

Citation

Cornhusker Economics, November 29, 2017, agecon.unl.edu/cornhuskereconomics

Comments

Copyright 2017 University of Nebraska.

Abstract

In a previous article (Who Is Trading in the Futures Markets and Why It Matters ?Part 1, 12/14/2016), we discussed the importance of learning about different types of traders in commodity markets and how we can obtain and understand the Commitments of Traders (COT) report, which provides data on trader's positions in futures markets. Today we will discuss some approaches to interpret COT reports, trying to assess the reasoning behind trading decisions from different traders, which can reflect their price outlook and provide insights on how futures prices might change.

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