Coffee Traders' Forum - A Discussion about Coffee Futures Trading


Coffee Traders Discussion Forum

Coffee Traders' Forum

Looking at the Momentum Funds *PIC*

The following graph is meant to illustrate at what level the funds possibly are in relation to their position limits. An entity as a maximum position limit of 5,000 lots. The rule does not apply to commercials who can show that they are hedging. But looking at the gross short position of the managed money and the current number of traders in that sector, can we make any theoretical conclusion as to where the momentum funds will reach their position limits.

We know that there are obviously more than 10 funds who are algos but it’s difficult to envision that there are many more operating in the coffee market. I believe that the number is likely not more than 25. Anyone have a view?

BTW the number of short funds has been increaseing and is now up to 100 traders.