Latam’s stake in systematic flows: What CTA positioning means for commodity markets

On April 8, Brent fell 13% following ceasefire headlines, triggering approximately 8.9 million barrels of systematic CTA selling. Just nine days later, on April 17, Brent declined another 9% after Iran declared the Strait of Hormuz open. This time, systematic selling reached roughly 54 million barrels in a single session. Despite similarly sharp price declines, the CTA response was dramatically different.

Fundamental developments may initiate a price move, but systematic positioning can play an important role in what happens next. Many systematic Commodity Trading Advisors (CTAs) deploy similar trading strategies, creating concentrated buying and selling activity when prices reach certain levels. Understanding where these orders may emerge helps explain why similar market events can produce very different responses.

Kpler Financial Flows provides visibility into this activity by recreating systematic CTA strategies. This allows market participants to monitor current positioning, identify potential entry and exit levels, and assess the trade volumes that could emerge as prices move.

For Latin American commodity participants, this adds another dimension to fundamental analysis. Brent and ULSD influence regional fuel prices, while corn and soybeans are central to major agricultural exporters such as Brazil and Argentina.

This story was originally published by Hellenic Shipping News. Read the full story at Hellenic Shipping News →