The Commitments of Traders (COT) report is a weekly publication by the Commodity Futures Trading Commission (CFTC) that shows the aggregate positions of different types of traders in U.S. futures markets. The report categorizes positions into commercial traders (hedgers), non-commercial traders (large speculators), and non-reportable positions (small traders).

COT data provides valuable insights into market sentiment and positioning, helping traders identify potential market extremes and reversal points. When commercial traders (who typically hedge against price moves) hold extreme positions opposite to speculators, it may signal potential trend changes. Many traders use COT analysis as a contrarian indicator or to confirm existing market trends.

Real-world example: COT data shows large speculators are record long crude oil while commercial traders are near record short, suggesting potential for oil price decline as speculative positions may need to unwind.