Tue, Aug 4, 2015
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. Other Voices: Same day reporting and the evolving role of fund administrators[more]

    By: Scott Price, Head of Business Development and Client Management for North America, Maitland Ernst & Young’s latest glob

  2. Activist News - Celgene says patent-fighting hedge fund manager wants to short its shares[more]

    From Reuters.com: Celgene Corp, one of the world's largest biotechnology companies, has accused U.S. hedge fund manager Kyle Bass of attempting to profit from his attempts to wipe out several major drug patents through his Coalition for Affordable Drugs. The company asked the U.S. Patent and T

  3. Einhorn's Greenlight Capital hedge fund slumps 6.1 percent in July[more]

    From Reuters/Thefiscaltimes.com: Hedge fund mogul David Einhorn's Greenlight Capital slumped 6.1 percent in July and is now down 9 percent for the year after gold, one of the fund's top holdings, tumbled to five-year lows last week. Greenlight notified clients of its returns late on Friday, ac

  4. Cowen Group, Inc. to acquire Conifer Securities[more]

    Cowen Group, Inc. and Conifer Securities, LLC had announced the signing of a definitive agreement under which Cowen will acquire Conifer Securities, the prime services division of Conifer Financial Services LLC. The transaction, the terms of which have not yet been disclosed, was approved by the boa

  5. Cargill’s Black River Asset to shut down four hedge funds[more]

    Komfie Manalo, Opalesque Asia: Cargill Inc.’s $7.4 billion Black River Asset Management said it was closing four hedge funds with a combined $ 1 billion in assets and start returning investors money over the next several months, various media said. The hedge funds represent 15% of Black River’

 

banner