Thu, Dec 18, 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

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. Investing - Big hedge funds win again on PetSmart, Riverbed, RBS sells real estate loans to hedge fund Cerberus, Talisman energy speculation: Which hedge funds could benefit?[more]

    Big hedge funds win again on PetSmart, Riverbed From CNBC.com: Another week, another set of wins for activist investors. On Sunday, pet supply retailer PetSmart agreed to the largest leveraged buyout of the year at $8.7 billion. Hedge fund firm JANA Partners had been pushing for a sale a

  2. Outlook - Hedge fund manager who remembers 1998 rout says prepare for pain, Bond guru Bill Gross predicts U.S. economic growth to dip to 2%[more]

    Hedge fund manager who remembers 1998 rout says prepare for pain From Bloomberg.com: Stephen Jen landed in Hong Kong in early January 1997 as Morgan Stanley’s newly minted exchange-rate strategist for Asia. He was soon working around the clock when investors began targeting the region’s

  3. Opalesque Exclusive: U.S. legal receivables fund launched in August[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Investing in asset-backed receivables is a strategy that has been an integral part of the alternative investment space within the overall fixed income asset c

  4. Comment - High fees and low performance hit hedge funds[more]

    From FT.com: Disenchantment over high fees and lackluster performance may finally be turning the tide against hedge funds, fresh data suggest. Despite generally weak returns since the global financial crisis, hedge funds have enjoyed positive net inflows every year since 2010. This helped assets und

  5. Performance - Lansdowne, Man Group, other hedge funds profit from shorts in oil, Turmoil boosts hedge funds that bet against Russia, oil, CTAs post strongest returns since December 2010[more]

    Lansdowne, Man Group, other hedge funds profit from shorts in oil From Valuewalk.com: The rising short interest in oil companies implies that the worst for oil is yet to come. Data from Markit shows that short exposure in energy sector of S&P 500 is still looming close to the highest mar