Money managers reduced bets on rising prices of robusta coffee traded in London by 56 percent in the week ended Oct. 30, according to data from NYSE Liffe, the derivatives arm of NYSE Euronext.
Net-long positions, or bets on higher prices, fell to 3,876 futures and options, the commitments of traders report published today on the exchange’s website showed. That compares with 8,794 contracts a week earlier. Prices fell 3.6 percent in the period.
“Looking at the weekly chart, London is beginning to look likely to test lower, which is probably why we have seen some fund selling,” London-based broker Sucden Financial Ltd. said in a report e-mailed Nov. 2. “A fund short could eventually be the catalyst to higher prices.”
In cocoa, net-long positions fell to 42,310 futures and options from 44,089 contracts a week earlier, the data showed. Cocoa slid 5.1 percent in the period.
The net-long position in white, or refined, sugar held by money managers fell to 2,678 futures and options from 4,245 contracts a week earlier, the data showed. The sweetener slipped 3 percent in the period.
Money managers held no position in feed wheat, unchanged from a week earlier. The grain rose 2.2 percent in the period.
To contact the reporter on this story: Isis Almeida in London at email@example.com
To contact the editor responsible for this story: Claudia Carpenter at firstname.lastname@example.org