"A "producer/merchant/processor/user" is an entity that...

"A "producer/merchant/processor/user" is an entity that predominantly engages in the production, processing, packing or handling of a physical commodity and uses the futures markets to manage or hedge risks associated with those activities".

This is the category i'm most interested in. Because they deal with the actual commodity they use futures contracts as hedges. They have an inside knowledge basically because they might see that a regular buyer has ordered half their usual amount of copper product. They might buy actual raw concentrate and refine it to sell again but the demand for that product has fallen or risen dramatically.

If they think they have to lower their price to sell they might as well offset loss by being short using futures.

You can see that in the shot I have provided this category of trader hold 126,836 units short and 19,116 units long. ( each unit is 25,000 pounds)

Expressed as percentage of open interest its 47 short 7.1 long

In short the big guys in the know are suggesting the price of copper will drop by being net short copper.

As a smelly farmer I'd be happy for any one that has been near a futures contract to correct me anywhere but this is how I see it.

You can read the latest each saturday (US friday) to see the changes week by week.

https://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm

I only found this by reading " Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Application" By John J Murphy.

Well worth the money. A reference or " Bible " to me.