Wed, Oct 22, 2014
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Macquarie warns hedge funds against big coffee bet

Tuesday, February 25, 2014

Komfie Manalo, Opalesque Asia:

Banking, financial, investment and funds management services advisor Macquarie Group warns hedge funds against their big coffee bet and said jumping in coffee futures risks being wrong-footed by a correction.

Macquarie made the warning after data from the U.S. Commodity Futures Trading Commission showed managed money, a proxy for speculators, raised by more than 116,000 contracts its net long in futures and options in the main 13 US-traded agricultural commodities in the week ending February 18. The rise is highest recorded in 16 months.

Agrimoney said Macquarie fears for a potential "violent swing downwards" in coffee prices. "Persistently below-average rainfall and warmer-than-normal temperatures across the key producing states of Minas Gerais, Sao Paulo and Espirito Santo have stressed coffee plants, with limited irrigation available. While it is too early to predict potential losses with certainty, Brazil's arabica yields and quality will be constrained during this season and the next," Agrimoney quoted Rabobank as saying.

Macquarie analyst Kona Haque warned that the rise in futures prices were fund driven. "New fresh [fund] longs have been added for fear of a market shortage, causing prices to break through various technical barriers. This in turn h......................

To view our full article Click here

Banner

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Commodities - Oil wreaking havoc on small-cap energy stocks sliding 36%[more]

    From Bloomberg.com: Owning almost anything in the U.S. stock market has been a losing proposition since September. Owning smaller energy companies has been a catastrophe. Hercules Offshore Inc. and Resolute Energy Corp. are among 19 oil-and-gas equities in the Russell 2000 Index that lost more than

  2. Investing - Hedge funds favor equity long/short, Strategic bond managers hedge against further high yield sell-off[more]

    Hedge funds favor equity long/short From Securitieslendingtimes.com: Equity long/short strategies will generate good returns for hedge funds in the future, according to a panel at this year’s Risk Management Association Conference on Securities Lending in Naples, Florida. Panellists Sand

  3. Legal - Ex-hedge fund analyst weeps as judge hands down 5 year sentence, Former Columbus investment manager Steven P. Moore indicted on theft charges, SEBI confirms ban for Hong Kong hedge fund, SEC announces enforcement action against compliance officer[more]

    Ex-hedge fund analyst weeps as judge hands down 5 year sentence From Hereisthecity.com: An ex-hedge fund analyst was sentenced to 5 years in prison for his role in insider-trading scheme. The New York Post reports that former hedge fund analyst Matthew Teeple was sentenced Thursday to fiv

  4. Goldman in talks to acquire IndexIQ[more]

    From Bloomberg.com: Can Goldman Sachs put ETF investors on a liquid diet? Goldman is in talks to acquire IndexIQ, Reuters has reported. Index IQ is a small exchange-traded-fund firm known mostly for products that replicate hedge fund strategies, called "liquid alternative" ETFs. While IndexIQ has 11

  5. Other Voices: CALPERS dilemma should be a warning to hedge funds wanting institutional investors[more]

    From Ian Hamilton, founder of IDS Group. A quick comment on the CALPERS’ disinvestment from the hedge fund market and the jitters it is causing. Pension Funds should not be sheep and follow CALPERS’ decision as the issues that CALPERS has with hedge fund investments are in many ways unique t