COT

The Commitments of Traders (COT) report is a weekly publication from the US Commodity Futures Trading Commission (CFTC) that outlines the aggregate positions held by different categories of traders in futures markets. These categories typically include commercial participants (often hedgers), non-commercial participants (such as funds and speculators), and non-reportables (smaller traders). The report offers transparency into how various types of market participants are positioned, helping analysts and traders interpret sentiment, market structure, and potential imbalances. Because the data is broken down by contract, the COT report is widely followed across energy, metals, agriculture, financial futures, and currency markets. While the information is delayed and does not capture intraday positioning, it can reveal longer-term trends such as increasing speculative interest or shifting hedging flows. Some traders use COT data to identify contrarian signals, reasoning that extreme positioning may precede reversals, while others use it to confirm broader market narratives. The COT report is not a standalone trading tool, but when combined with technical analysis, macroeconomic developments, or supply-demand fundamentals, it contributes to a more complete understanding of market behaviour and risk appetite across global derivatives markets.