Thu, Jun 22, 2017
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

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. Comment: For emerging market debt, a sustainable recovery[more]

    Matthias Knab, Opalesque: Standish Mellon Asset Management Company writes on Harvest Exchange: After several difficult years, the outlook for emerging market debt (EMD) denomin

  2. J.P. Morgan Global Alternatives raises distressed shipping fund[more]

    From Institutionalinvestor.com: J.P. Morgan Global Alternatives has closed a $480 million fund to invest in distressed shipping assets, attracting capital from pensions, endowments and insurance companies. The firm, which has been investing in maritime for more than a decade, initially targeted $400

  3. FinTech - Rise of robots: Inside the world's fastest growing hedge funds[more]

    From Bloomberg.com: Believe the hype. Quants have never been more popular. After doubling over the past decade, assets run by so-called systematic funds have hit a record $500 billion this year, according to estimates from Barclays Plc. In some ways, their meteoric rise is due to the same technolog

  4. Legal - Bond market concerns could scuttle Paulson's Fannie-Freddie plan[more]

    From Bloomberg.com: A hedge fund proposal for freeing Fannie Mae and Freddie Mac from U.S. control is poised to face stiff opposition from investors who say it risks wrecking the mortgage-bond market. The Moelis & Co. blueprint, which firms including Paulson & Co. and Blackstone Group LP sponsored,

  5. Other Voices: Are your pricing policies and procedures for less liquid instruments adequate?[more]

    Komfie Manalo, Opalesque Asia: The unrelated position mismarking incidents that quickly precipitated the closures of both Visium Asset Management and Marinus Capital have been recent focal points for market participants, but regulatory scrutiny of valuation choices for less liquid instruments is