For example, a trader with a bearish bias on a currency pair based on economic data might reconsider their position if the COT report indicates significant net long positions held by non-commercials. The COT report gauges market sentiment, revealing the positioning of various trading groups. This information can be used to assess whether the market leans bullish or bearish, potentially leading to adjustments in trading biases. The COT report can https://www.tradingview.com/ be employed to confirm or challenge existing analyses derived from technical indicators or fundamental data. For instance, if technical analysis suggests a potential uptrend, a rise in net long positions by commercials in the trader’s COT report would strengthen this bullish outlook. The 2025 COT Report Release Schedule ensures traders have timely access to market data.
Gauging market sentiment
The COT report focuses on traders whose positions meet or exceed the CFTC’s established reporting levels. This captured data allows analysts to assess market sentiment and positioning. By understanding which types of traders (such as commercials, speculators. etc.) hold large long or short positions, the traders reports can provide clues about potential future market https://www.psg.co.za/ movements.
Trading Guides
We’re also a community of traders that support each other on our daily trading journey. Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sasol south africa limited sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.
Commitments of Traders
Any residual long or short position is reported in the long or short column. It acts as a sentiment indicator, allowing traders to assess if the market leans bullish or bearish based on the net positions. Because the COT measures the net long sasol investment and short positions taken by speculative traders and commercial traders, it is a great resource to gauge how heavily these market players are positioned in the market. The supplemental report is the one that outlines 13 specific agricultural commodity contracts. This report shows a breakdown of open interest positions in three different categories.
Commodity COT Data
- Next, let’s take a look at the Producer/Merchant/Processor/User section.
- However, these extremes can persist for a while, and the COT report shouldn’t be used for short-term trading signals.
- This signaled potential exit pressure, and shortly after, silver prices reversed as predicted by the COT data.
- The next row after that shows the number of traders in each category.
- The total open interest is given as well as changes in open interest.
Of these, 14,320 were longs held by dealers and 10,875 shorts sold by institutional traders. The COT also delineates the number of contracts involved https://www.sanlam.co.za/ in spreads. The COT provides an overview of what the key market participants think and helps determine the likelihood of a trend continuing or coming to an end.