Coffee Traders' Forum - A Discussion about Coffee Futures Trading


Coffee Traders Discussion Forum

Coffee Traders' Forum

COT Analysis Without The Commercial Component

Can COT analysis be valid without discussing the commercial position? I think not. Observers and news services often use different COT formats, but rarely identify which format they are using. Most also cover the non-commercials/money managers, but rarely mention the commercial positions. Cocoa and sugar are good examples. While the fund types covered large short positions and are now lightly long, the commercials piled on the shorts big time. That precluded me from even considering the long side of cocoa and sugar.