Platinum Futures COT Report: Week Ending 2026-02-13

Executive summary

This report reveals a market in a state of consolidation and de-risking after a significant washout. Overall open interest plummeted to its lowest level in the provided seven-week history, indicating a broad exit of capital. Speculators (Managed Money) modestly increased their net long position, but this was driven entirely by aggressive short-covering rather than new bullish bets, a sign of potential capitulation from bears. Concurrently, Commercials (Producers/Merchants) reduced their net short hedge to its lowest level in the observed period. The dramatic reduction in both speculative length and commercial hedging from their late-December peaks suggests that the strong directional momentum has faded, setting the stage for a potential range-bound environment or a sharp reversal if new catalysts emerge.

Positioning

• Managed Money: Net position shifted to a modest +1,708 contracts long. This is up slightly from last week's +1,277 contracts but remains the second-lowest net long position in the provided seven-week period. It represents a significant reduction from the peak net long of +16,245 contracts recorded on December 23, 2025, highlighting a major unwind of speculative bullishness.
• Producers/Merchants (Commercials): Held a net short position of -13,019 contracts. This is the smallest net short position in the provided dataset, indicating a notable reduction in hedging pressure. For context, their peak net short position was -16,827 contracts on December 23.
• Swap Dealers: Maintained a net short position of -5,759 contracts. This is a significant reduction in their net short exposure compared to the prior week.

Flows and week-over-week changes

The reporting week was characterized by position squaring and exits rather than new directional conviction. - Managed Money Flow: The net long increase of 431 contracts was the result of a significant reduction in short positions (-2,242 contracts), which more than offset a simultaneous reduction in long positions (-1,811 contracts). This dynamic points to short-covering, not fresh buying, as the driver. - Producer/Merchant Flow: Commercials reduced their net short by 285 contracts. This was achieved by cutting both short hedges (-847 contracts) and long positions (-562 contracts), suggesting reduced activity on both sides of the book. - Market Exit: The most telling change was the sharp drop in total open interest, which fell by 4,529 contracts week-over-week. This confirms a broad-based de-risking and exit from the Platinum market.

Commercials vs speculators

The classic dynamic of net-short Commercials versus net-long Speculators persists, but the conviction on both sides has diminished significantly since late last year. - The spread between the Managed Money net long (+1,708) and the Producer/Merchant net short (-13,019) has narrowed considerably from its extremes. - The fact that Commercials are at their least-hedged (least net-short) level in the observed period could suggest they perceive less downside price risk or have less physical product to hedge at current levels. - The speculative long position is now a fraction of its former size, suggesting the "easy money" on the long side has been made, and an extended period of liquidation is now largely complete.

Open interest and participation

• Declining Participation: Total open interest stands at 69,061 contracts, the lowest level in the seven-week history provided. This is a steep 29% decline from the peak of 97,095 contracts on December 23, 2025. Such a significant drop in liquidity and participation often precedes a period of range-trading or signals exhaustion of the prior trend.
• Concentration: The short side of the market remains highly concentrated. The largest four traders hold 32.4% of the net short position, and the largest eight hold 46.4%. This concentration poses a risk of a short squeeze should a bullish narrative take hold, as a small number of players could be forced to cover their positions simultaneously. Long-side concentration is materially lower.

Price context

Note: The provided price series ends on February 5, 2026, a week prior to the COT report's as-of date of February 13. The analysis reflects the price action leading into the reporting period. - The price series shows a dramatic decline in late January and early February. After peaking above 2750 on January 26, the price fell sharply, closing at 2461.5 on January 30 and reaching a low of 2080.0 on February 5. - This steep price drop corresponds directly with the significant long liquidation by Managed Money seen throughout January, where their net long position collapsed from over 16,000 contracts to just over 1,200. - The short-covering activity detailed in this week's report likely occurred as prices attempted to find a bottom following the sharp sell-off in early February.

Risks and watchpoints

• Washed-Out Speculative Length: With the Managed Money net long position near multi-week lows, the supply of speculative selling from long liquidation is likely exhausted. This removes a key headwind for prices and could make the market more sensitive to bullish news.
• Potential for Short Squeeze: Given the low level of speculative bullishness and the high concentration on the short side, the market is vulnerable to a sharp upward move if shorts are forced to cover.
• Commercial Re-Hedging: A key signal to watch will be if Producers/Merchants begin to substantially increase their net short position again. This would indicate renewed producer hedging and could cap any potential price rallies.
• Return of Open Interest: A sustainable new trend, either up or down, will likely require a reversal of the sharp decline in open interest. A rise in OI alongside rising prices would be a strongly bullish confirmation signal, indicating new money is entering to support the move.