Producer Merchant Positions in COT Reports
Understand the official Producer/Merchant/Processor/User category and why it should not be reduced to a single hedger label.
Official category
Producer/Merchant/Processor/User covers entities predominantly engaged in producing, processing, packing, handling or merchandising a physical commodity and using futures to manage business risk.
Interpretation limit
The category contains varied businesses and exposures. Calling every observation a simple producer hedge obscures processors, merchants, users and paired risk management.