The first half of the midcrop is off to an auspicious start, with weekly arrivals far outpacing last season’s pace. In the most recent week, cumulative arrivals into both Abidjan and San Pedro were estimated around 50,000 MT vs. only 19,000 MT a year ago. Perhaps the outbreak of COVID-19 had something to do with last year’s performance or crop conditions favored the later flow of the crop. Either way, there’s no disputing the robust numbers being reported and the psychological effect these had on the terminal market in late April.
Speculative funds have been keenly interested in commodities this year as an underlying hedge against inflation and an improving economy. This past week’s CFTC Commitment of Traders reporting showed that funds liquidated just over 13,500 net long contracts, reducing their total position to 22,107 net longs (futures only)—the shortest their position has been since last November. Commercial end-users were the featured buyers, extending cover through the balance of 2021 and into Q2 2022, adding to length, as expected.
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