GSX Weekly Commodity Comment - Free Package

The current market situation has become rather calm, and almost uneasy, when we put it into perspective against the wild run we have seen across softs. Sugar had a significant rally, cotton ran hard before pulling back, and KC saw a rapid spike followed by a major move lower.

The latest CFTC report helps explain some of that change in tone. Funds have come off across the board, with a large amount of gross long liquidation across softs, but importantly, we have not seen the same level of new shorts being added.

That is interesting because it suggests funds do not have a strong view to either the upside or downside right now. Rather than aggressively reversing their view, they have simply chosen to exit.

This is where the market becomes more interesting. When positioning is reduced and conviction starts disappearing, the surface-level price action often tells less of the story. We break down the areas underneath that move and provide some clarity around why funds may be stepping away, from both a fundamental and technical perspective, while also looking at positioning, spreads and options structures that can reveal a much deeper picture of what is happening below the surface.

AI is moving fast and most people are falling behind. 

The Rundown AI keeps you ahead of the curve. 

It's a free AI newsletter that keeps you up-to-date on the latest AI news, and teaches you how to apply it in just 5 minutes a day.

Plus, complete the quiz after signing up and they’ll recommend the best AI tools, guides, and courses — tailored to your needs.

Sign up to start learning.