The Commitment of Traders report, published weekly by the CFTC, breaks down open interest in futures markets by trader category: commercials (hedgers who produce or consume the commodity), non-commercials (speculators, including hedge funds), and non-reportable (small traders).
Commericial hedgers are considered the smart money in commodity markets because they have the deepest understanding of supply and demand fundamentals. When commercials shift to extreme long or short positions, it often signals major turning points.
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