UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from           to          

Commission File Number: 000-25603

CERES CLASSIC L.P.

(Exact name of registrant as specified in its charter)

Delaware	13-4018068
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

c/o Ceres Managed Futures LLC

522 Fifth Avenue

New York, New York 10036

(Address of principal executive offices) (Zip Code)

(855) 672-4468

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act: None.

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
N/A	N/A	N/A

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X    No   

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes X    No   

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer                       Accelerated filer                                 Non-accelerated filer X

Smaller reporting company              Emerging growth company     

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.     

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes    No X

As of July 31, 2023, 5,313,477.157 Limited Partnership Class A Units were outstanding and 11,079.649 Limited Partnership Class Z Units were outstanding. 

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

Ceres Classic L.P.

Statements of Financial Condition

	June 30, 2023       (Unaudited)		December 31,       2022
Assets:
Investment in the Trading Company(1), at fair value	$	56,689,942	$	49,515,860
Redemptions receivable from the Trading Company		150,314		135,251
Equity in trading account:
Unrestricted cash		80,610,939		88,160,202
Restricted cash		21,264,352		19,875,426
Foreign cash (cost $45,050 and $771,385 at June 30, 2023 and December 31, 2022, respectively)		50,325		784,522
Net unrealized appreciation on open futures contracts		2,798,569		170,573
Net unrealized appreciation on open forward contracts		430,423		453,392
Total equity in trading account		105,154,608		109,444,115
Interest receivable		355,783		291,679
Total assets	$	162,350,647	$	159,386,905
Liabilities and Partners’ Capital:
Liabilities:
Accrued expenses:
Administrative and General Partner’s fees		99,160		102,153
Management fees		161,577		159,450
Professional fees		183,930		160,606
Redemptions payable to General Partner		-		300,000
Redemptions payable to Limited Partners		1,260,295		1,023,648
Total liabilities		1,704,962		1,745,857
Partners’ Capital:
General Partner, Class Z, 138,422.641 Units outstanding at June 30, 2023 and December 31, 2022		1,771,300		1,667,285
Limited Partners, Class A, 5,340,011.087 and 5,549,158.868 Units outstanding at June 30, 2023 and December 31, 2022, respectively		158,732,611		155,840,325
Limited Partners, Class Z, 11,079.649 Units outstanding at June 30, 2023 and December 31, 2022		141,774		133,438
Total partners’ capital (net asset value)		160,645,685		157,641,048
Total liabilities and partners’ capital	$	162,350,647	$	159,386,905
Net asset value per Unit:
Class A	$	29.73	$	28.08
Class Z	$	12.80	$	12.04

(1)  Defined in Note 1.

See accompanying notes to financial statements.

1

Ceres Classic L.P.

Condensed Schedule of Investments

June 30, 2023

(Unaudited)

	Notional ($)/       Number of Contracts		Fair Value		% of Partners’     Capital
Futures Contracts Purchased
Currencies		120	$	63,129		0.04	%
Energy		66		88,401		0.06
Grains		202		(92,713)		(0.06)
Indices		752		1,008,227		0.63
Interest Rates U.S.		56		(28,719)		(0.02)
Interest Rates Non-U.S.		104		(45,866)		(0.03)
Livestock		54		312,727		0.19
Metals		23		(34,589)		(0.02)
Softs		155		(309,916)		(0.19)
Total futures contracts purchased				960,681		0.60
Futures Contracts Sold
Currencies		137		119,731		0.07
Energy		179		(401,607)		(0.25)
Grains		105		(9,954)		(0.01)
Indices		195		(192,684)		(0.12)
Interest Rates U.S.		338		415,477		0.26
Interest Rates Non-U.S.		1,774		1,926,818		1.20
Metals		111		125,952		0.08
Softs		104		(145,845)		(0.09)
Total futures contracts sold				1,837,888		1.14
Net unrealized appreciation on open futures contracts			$	2,798,569		1.74	%
Unrealized Appreciation on Open Forward Contracts
Currencies	$	259,047,081	$	2,467,311		1.54	%
Metals		286		970,726		0.60
Total unrealized appreciation on open forward contracts				3,438,037		2.14
Unrealized Depreciation on Open Forward Contracts
Currencies	$	238,059,995		(2,381,817)		(1.48)
Metals		208		(625,797)		(0.39)
Total unrealized depreciation on open forward contracts				(3,007,614)		(1.87)
Net unrealized appreciation on open forward contracts			$	430,423		0.27	%
Investment in the Trading Company
CMF Winton Master L.P.			$	56,689,942		35.29	%

See accompanying notes to financial statements.

2

Ceres Classic L.P.

Condensed Schedule of Investments

December 31, 2022

	Notional ($)/       Number of Contracts		Fair Value		% of Partners’     Capital
Futures Contracts Purchased
Currencies		117	$	(6,725)		(0.00)	%*
Energy		96		531,723		0.34
Grains		341		244,568		0.16
Indices		663		(1,846,990)		(1.17)
Interest Rates U.S.		95		(182,234)		(0.12)
Interest Rates Non-U.S.		337		(741,033)		(0.47)
Livestock		55		50,980		0.03
Metals		33		53,655		0.03
Softs		240		30,538		0.02
Total futures contracts purchased				(1,865,518)		(1.18)
Futures Contracts Sold
Currencies		32		(29,521)		(0.02)
Energy		30		77,875		0.05
Grains		129		(55,088)		(0.02)
Indices		150		300,983		0.19
Interest Rates U.S.		508		288,883		0.18
Interest Rates Non-U.S.		1,331		1,566,169		0.99
Livestock		18		(12,550)		(0.01)
Metals		18		(27,988)		(0.02)
Softs		96		(72,672)		(0.05)
Total futures contracts sold				2,036,091		1.29
Net unrealized appreciation on open futures contracts			$	170,573		0.11	%
Unrealized Appreciation on Open Forward Contracts
Currencies	$	181,925,437	$	2,005,546		1.27	%
Metals		142		469,150		0.30
Total unrealized appreciation on open forward contracts				2,474,696		1.57
Unrealized Depreciation on Open Forward Contracts
Currencies	$	162,560,678		(1,604,184)		(1.02)
Metals		138		(417,120)		(0.26)
Total unrealized depreciation on open forward contracts				(2,021,304)		(1.28)
Net unrealized appreciation on open forward contracts			$	453,392		0.29	%
Investment in the Trading Company
CMF Winton Master L.P.			$	49,515,860		31.41	%

* Due to rounding.

See accompanying notes to financial statements.

3

Ceres Classic L.P.

Statements of Income and Expenses

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Investment Income:
Interest income	$	1,080,228	$	145,102	$	2,074,964	$	163,986
Interest income allocated from the Trading Company		518,794		55,639		918,168		62,507
Total investment income		1,599,022		200,741		2,993,132		226,493
Expenses:
Expenses allocated from the Trading Company		71,801		42,210		115,691		104,782
Clearing fees		97,313		57,347		187,143		113,037
Administrative and General Partner’s fees		291,828		305,925		590,296		570,458
Ongoing placement agent fees		288,396		302,062		583,423		563,372
Management fees		472,800		483,273		950,889		903,119
Incentive fees		-		1,025,005		-		2,696,235
Professional fees		111,291		98,008		224,019		221,345
Total expenses		1,333,429		2,313,830		2,651,461		5,172,348
Net investment income (loss)		265,593		(2,113,089)		341,671		(4,945,855)
Trading Results:
Net gains (losses) on trading of commodity interests:
Net realized gains (losses) on closed contracts		1,634,273		17,181,750		569,898		32,361,534
Net realized gains (losses) on closed contracts allocated from the Trading Company		3,516,389		7,728,362		3,618,653		12,473,444
Net change in unrealized gains (losses) on open contracts		2,355,682		(4,863,398)		2,597,165		(209,570)
Net change in unrealized gains (losses) on open contracts allocated from the Trading Company		2,846,920		(3,886,471)		1,870,098		400,453
Total trading results		10,353,264		16,160,243		8,655,814		45,025,861
Net income (loss)	$	10,618,857	$	14,047,154	$	8,997,485	$	40,080,006
Net income (loss) per Unit*:
Class A	$	1.95	$	2.37	$	1.65	$	6.65
Class Z	$	0.86	$	1.04	$	0.76	$	2.88
Weighted average Units outstanding:
Class A		5,402,192.887		5,820,058.538		5,452,051.421		5,922,954.651
Class Z		149,502.290		174,419.234		149,502.290		174,419.234

*    Represents the change in net asset value per Unit during the period.

See accompanying notes to financial statements.

4

Ceres Classic L.P.

Statements of Changes in Partners’ Capital

For the Three and Six Months Ended June 30, 2023 and 2022

(Unaudited)

	Class A				Class Z				Total
	Amount		Units		Amount		Units		Amount		Units
Partners’ Capital, December 31, 2021	$	135,260,404		6,086,081.989	$	1,650,258		174,419.234	$	136,910,662		6,260,501.223
Redemptions - Limited Partners		(8,881,648)		(338,335.846)		-		-		(8,881,648)		(338,335.846)
Net income (loss)		39,578,584		-		501,422		-		40,080,006		-
Partners’ Capital, June 30, 2022	$	165,957,340		5,747,746.143	$	2,151,680		174,419.234	$	168,109,020		5,922,165.377
Partners’ Capital, March 31, 2022	$	155,756,368		5,876,490.980	$	1,971,579		174,419.234	$	157,727,947		6,050,910.214
Redemptions - Limited Partners		(3,666,081)		(128,744.837)		-		-		(3,666,081)		(128,744.837)
Net income (loss)		13,867,053		-		180,101		-		14,047,154		-
Partners’ Capital, June 30, 2022	$	165,957,340		5,747,746.143	$	2,151,680		174,419.234	$	168,109,020		5,922,165.377

	Class A				Class Z				Total
	Amount		Units		Amount		Units		Amount		Units
Partners’ Capital, December 31, 2022	$	155,840,325		5,549,158.868	$	1,800,723		149,502.290	$	157,641,048		5,698,661.158
Redemptions - Limited Partners		(5,992,848)		(209,147.781)		-		-		(5,992,848)		(209,147.781)
Net income (loss)		8,885,134		-		112,351		-		8,997,485		-
Partners’ Capital, June 30, 2023	$	158,732,611		5,340,011.087	$	1,913,074		149,502.290	$	160,645,685		5,489,513.377
Partners’ Capital, March 31, 2023	$	150,804,412		5,427,771.299	$	1,784,858		149,502.290	$	152,589,270		5,577,273.589
Redemptions - Limited Partners		(2,562,442)		(87,760.212)		-		-		(2,562,442)		(87,760.212)
Net income (loss)		10,490,641		-		128,216		-		10,618,857		-
Partners’ Capital, June 30, 2023	$	158,732,611		5,340,011.087	$	1,913,074		149,502.290	$	160,645,685		5,489,513.377

See accompanying notes to financial statements.

5

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

1. Organization:

Ceres Classic L.P. (the “Partnership”) is a Delaware limited partnership organized in 1998 to engage primarily in the speculative trading of futures contracts, options on futures and forward contracts, forward contracts on physical commodities and other commodity interests, including, but not limited to, foreign currencies, financial instruments, metals, energy and agricultural products (collectively, “Futures Interests”) (refer to Note 4, “Financial Instrument Risks”). The General Partner (as defined below) may also determine to invest up to all of the Partnership’s assets in United States (“U.S.”) Treasury bills and/or money market mutual funds, including money market mutual funds managed by Morgan Stanley or its affiliates.

Ceres Managed Futures LLC, a Delaware limited liability company, acts as the general partner (“Ceres” or the “General Partner”) and commodity pool operator of the Partnership. The General Partner is a wholly-owned subsidiary of Morgan Stanley Domestic Holdings, Inc. (“MSD Holdings”). MSD Holdings is ultimately owned by Morgan Stanley. Morgan Stanley is a publicly held company whose shares are listed on the New York Stock Exchange. Morgan Stanley is engaged in various financial services and other businesses. Morgan Stanley Smith Barney LLC is doing business as Morgan Stanley Wealth Management (“Morgan Stanley Wealth Management”). This entity currently acts as the placement agent for the Partnership. Morgan Stanley Wealth Management is a principal subsidiary of MSD Holdings.

As of June 30, 2023, all trading decisions were made for the Partnership by Graham Capital Management, L.P. (“Graham”), Winton Capital Management Limited (“WCM”), EMC Capital Advisors, LLC (“EMC”) and Campbell & Company, LP (“Campbell”), as the commodity trading advisors to the Partnership (each, a “Trading Advisor” and collectively, the “Trading Advisors”). Each Trading Advisor is allocated a portion of the Partnership’s assets to manage. Ceres is responsible for selecting additional commodity trading advisors from time to time and for replacing Trading Advisors as it deems necessary. Trading advisors can be added, removed, or replaced at any time by Ceres, or Ceres may determine to adjust the allocation of assets to each Trading Advisor, without the consent of, or advance notice to, the limited partners.

As of January 1, 2021, the Partnership invested a portion of its assets in CMF Winton Master L.P., organized in New York as a limited partnership (“CMF Winton” or the “Trading Company”). The Partnership and any other feeder fund investing in the Trading Company constitute the limited partners of the Trading Company. The Trading Company is managed by Ceres Managed Futures LLC. CMF Winton has a single account with WCM. The Trading Company may and will, among other things, trade, buy, sell, spread, or otherwise acquire, hold, or dispose of Futures Interests.

The General Partner is not aware of any material changes to the trading programs discussed above during the fiscal quarter ended June 30, 2023.

During the reporting periods ended June 30, 2023 and 2022, the Partnership’s commodity broker was Morgan Stanley & Co. LLC (“MS&Co.”), a registered futures commission merchant. MS&Co. also acts as the counterparty on all trading of foreign currency forward contracts. MS&Co. is a wholly-owned subsidiary of Morgan Stanley. As of January 1, 2021, JPMorgan Chase Bank, N.A. (“JPM”) acts as prime broker in connection with foreign exchange forward and swap transactions for the Trading Company.

As of June 30, 2023, units of limited partnership interest (“Unit(s)”) of the Partnership are being offered in two share classes (each, a “Class” or collectively, the “Classes”). A Limited Partner will initially receive Class A Units in the Partnership, provided, that certain investors (other than ERISA/IRA investors) who subscribe for Units on a consulting basis, the General Partner, and certain employees of Morgan Stanley and/or its subsidiaries (and their family members) may be designated to hold Class Z Units. The Partnership previously offered Units in Class D; however, no Limited Partners hold Class D Units as of June 30, 2023, and Class D Units are no longer offered.

Each of Class A and Z Units of the Partnership have the same investment exposure and rights except for the amount of the ongoing placement agent fee charged to each Class of Units; however, Class Z Units are not subject to an ongoing placement agent fee.

6

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

The monthly management fee paid by the Partnership to Graham is equal to 1/12th of 1.25% (1.25% annual rate) of the Partnership’s net assets allocated to Graham as of the first day of each month. The Partnership pays Graham an incentive fee of 18% of new trading profits annually.

The Partnership pays WCM a flat-rate monthly fee equal to 1/12th of 1.5% (1.5% annual rate) of the Partnership’s net assets allocated to WCM as of the beginning of the relevant month, which is equal to the prior month end net assets, net of all fees and expenses for the previous month, and decreased by any redemptions for such prior month end and increased by any subscriptions for the current month. In addition, the Partnership pays WCM a quarterly incentive fee equal to 20% of new trading profits earned by WCM in each quarterly period. Pursuant to the management agreement with WCM, no incentive fee will be paid to WCM with respect to the Partnership until it has (i) recouped a certain loss carryforward and (ii) earned new trading profits (as defined in the applicable management agreement) from and after January 1, 2021. The loss carryforward applied to the Partnership will be adjusted according to the Partnership’s assets allocated to WCM as of January 1, 2021.

The Partnership pays Campbell a flat rate monthly fee equal to 1/12th of 1.25% (1.25% annual rate) of the beginning of the month net asset value allocated to Campbell, and the Partnership pays Campbell a quarterly incentive fee equal to 20% of trading profits earned by Campbell in each quarterly period.

The Partnership pays EMC a flat rate monthly fee equal to 1/12th of 0.875% (0.875% annual rate) of the beginning of the month net asset value allocated to EMC, and the Partnership pays EMC a quarterly incentive fee equal to 20% of trading profits earned by EMC in each quarterly period.

The ongoing placement agent fee paid by the Partnership to Morgan Stanley Wealth Management for Class A unit holders is equal to an annual rate of 0.75% of the adjusted net assets of Class A units (computed monthly by multiplying the adjusted net assets of the Class A units by 0.75% and dividing the result thereof by 12).

The administrative and general partner fee paid by the Partnership to Ceres for all limited partners is equal to an annual rate of 0.75% of the Partnership’s net assets (as defined in the Partnership’s Limited Partnership Agreement).

The Partnership directly pays the brokerage fees and other transaction-related fees and expenses, as incurred and also pays its ongoing administrative, operating, offering and organizational expenses (including, but not limited to, periodic legal, accounting, administrative, filing, reporting and data processing fees) and its pro rata share of such expenses of any trading company to which the Partnership has allocated assets.

The Trading Company has entered into a foreign exchange brokerage account agreement and a futures brokerage account agreement with MS&Co. The Partnership has also entered into a futures brokerage account agreement with MS&Co. Pursuant to these agreements, the Partnership, directly or indirectly through its investment in the Trading Company, pays MS&Co. (or will reimburse MS&Co., if previously paid) its allocable share of all trading fees for the clearing and, where applicable, execution of transactions as well as exchange, user, give-up, floor brokerage and National Futures Association fees (collectively, the “clearing fees”).

7

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

The Partnership has also entered into a selling agreement with Morgan Stanley Wealth Management (as amended, the “Selling Agreement”). Pursuant to the Selling Agreement, Morgan Stanley Wealth Management is paid a monthly ongoing selling agent fee at the rates described above. The ongoing selling agent fee received by Morgan Stanley Wealth Management is shared with the properly registered/exempted financial advisors of Morgan Stanley Wealth Management who sell Class A Units.

The Trading Company entered into certain agreements with JPM in connection with trading in forward foreign currency contracts on behalf of the Trading Company and, indirectly, the Partnership. These agreements include a foreign exchange and bullion authorization agreement (“FX Agreement”), an International Swap Dealers Association, Inc. master agreement (“Master Agreement”), a schedule to the Master Agreement, a 2016 credit support annex for variation margin to the schedule and an institutional account agreement. Under the FX Agreement, JPM charges a fee on the aggregate foreign currency transactions entered into on behalf of the Trading Company during a month.

The General Partner has delegated certain administrative functions to SS&C Technologies, Inc., a Delaware corporation, currently doing business as SS&C GlobeOp (the “Administrator”). Pursuant to a master services agreement, the Administrator furnishes certain administrative, accounting, regulatory reporting, tax and other services as agreed from time to time. In addition, the Administrator maintains certain books and records of the Partnership.

2. Basis of Presentation and Summary of Significant Accounting Policies:

The accompanying financial statements and accompanying notes are unaudited but, in the opinion of the General Partner, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the Partnership’s financial condition at June 30, 2023 and the results of its operations and changes in partners’ capital for the three and six months ended June 30, 2023 and 2022. These financial statements present the results of interim periods and do not include all of the disclosures normally provided in annual financial statements. These financial statements should be read together with the financial statements and notes included in the Partnership’s Annual Report on Form 10-K (the “Form 10-K”) filed with the Securities and Exchange Commission (the “SEC”) for the year ended December 31, 2022. The December 31, 2022 information has been derived from the audited financial statements as of and for the year ended December 31, 2022.

Due to the nature of commodity trading, the results of operations for the interim periods presented should not be considered indicative of the results that may be expected for the entire year.

Use of Estimates. The preparation of financial statements and accompanying notes in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses, and related disclosures of contingent assets and liabilities in the financial statements and accompanying notes. As a result, actual results could differ from these estimates, and those differences could be material.

Profit Allocation. The General Partner and each limited partner of the Partnership share in the profits and losses of the Partnership in proportion to the amount of Partnership interest owned by each, except that no limited partner is liable for obligations of the Partnership in excess of its capital contributions and profits, if any, net of distributions or redemptions and losses, if any.

Statement of Cash Flows. The Partnership has not provided a Statement of Cash Flows, as permitted by Accounting Standards Codification (“ASC”) 230, “Statement of Cash Flows.” The Statements of Changes in Partners’ Capital are included herein, and as of and for the periods ended June 30, 2023 and 2022, the Partnership carried no debt and all of the Partnership’s investments were carried at fair value and classified as Level 1 or Level 2 measurements.

8

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

Partnership’s Investment in the Trading Company. The Partnership carries its investment in the Trading Company based on the Partnership’s (1) net contribution to the Trading Company and (2) its allocated share of the undistributed profits and losses, including realized gains or losses and net change in unrealized gains or losses, of the Trading Company.

Partnership’s Investments. All Futures Interests held by the Partnership, including derivative financial instruments and derivative commodity instruments, are held for trading purposes. The Futures Interests are recorded on trade date and open contracts are recorded at fair value (as described in Note 6, “Fair Value Measurements”) at the measurement date. Investments in Futures Interests denominated in foreign currencies are translated into U.S. dollars at the exchange rates prevailing at the measurement date. Gains or losses are realized when contracts are liquidated and are determined using the first-in, first-out method. Net unrealized gains or losses on open contracts are included as a component of equity in trading account in the Statements of Financial Condition. Net realized gains or losses and net change in unrealized gains or losses are included in the Statements of Income and Expenses. The Partnership does not isolate the portion of the results of operations arising from the effect of changes in foreign exchange rates on investments from fluctuations from changes in market prices of investments held. Such fluctuations are included in total trading results in the Statements of Income and Expenses.

Partnership’s Cash. The cash held by the Partnership that is available for Futures Interests trading is on deposit in a commodity brokerage account with MS&Co. The Partnership’s restricted cash is equal to the cash portion of assets on deposit to meet margin requirements, as determined by the exchange or counterparty, and required by MS&Co. All of these amounts are maintained separately. At June 30, 2023 and December 31, 2022, the amount of cash held for margin requirements was $21,264,352 and $19,875,426, respectively. Cash that is not classified as restricted cash is therefore classified as unrestricted cash. Restricted and unrestricted cash includes cash denominated in foreign currencies of $50,325 (cost of $45,050) and $784,522 (cost of $771,385) as of June 30, 2023 and December 31, 2022, respectively.

Income Taxes. Income taxes have not been recorded as each partner is individually liable for the taxes, if any, on its share of the Partnership’s income and expenses. The Partnership follows the guidance of ASC 740, “Income Taxes,” which prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of tax positions taken or expected to be taken in the course of preparing the Partnership’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained “when challenged” or “when examined” by the applicable tax authority. Tax positions determined not to meet the more-likely-than-not threshold would be recorded as a tax benefit or liability in the Statements of Financial Condition for the current year. If a tax position does not meet the minimum statutory threshold to avoid the incurring of penalties, an expense for the amount of the statutory penalty and interest, if applicable, shall be recognized in the Partnership’s Statements of Income and Expenses in the periods in which the position is claimed or expected to be claimed. The General Partner has concluded that there are no significant uncertain tax positions that would require recognition in the financial statements. The Partnership files U.S. federal and various state and local tax returns. No income tax returns are currently under examination. The 2019 through 2022 tax years remain subject to examination by U.S. federal and most state tax authorities.

Investment Company Status. The Partnership has been deemed to be an investment company since inception. Accordingly, the Partnership follows the investment company accounting and reporting guidance of Accounting Standards Update 2013-08, “Financial Services—Investment Companies (Topic 946): Amendments to the Scope, Measurement and Disclosure Requirements” and reflects its investments at fair value with unrealized gains and losses resulting from changes in fair value reflected in the Statements of Income and Expenses.

Net Income (Loss) per Unit. Net income (loss) per Unit is calculated in accordance with ASC 946, “Financial Services – Investment Companies.” See Note 3, “Financial Highlights.”

There have been no material changes with respect to the Partnership’s critical accounting policies as reported in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022.

9

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

3. Financial Highlights:

Financial highlights for the limited partner class as a whole for the three and six months ended June 30, 2023 and 2022 were as follows:

	Three Months Ended June 30,								Six Months Ended June 30,
	2023				2022				2023				2022
	Class A		Class Z		Class A		Class Z		Class A		Class Z		Class A		Class Z
Per Unit Performance (for a unit outstanding throughout the period):*
Net realized and unrealized gains (losses)	$	1.90	$	0.82	$	2.73	$	1.17	$	1.59	$	0.69	$	7.48	$	3.19
Net investment income (loss)		0.05		0.04		(0.36)		(0.13)		0.06		0.07		(0.83)		(0.31)
Increase (decrease) for the period		1.95		0.86		2.37		1.04		1.65		0.76		6.65		2.88
Net asset value per Unit, beginning of period		27.78		11.94		26.50		11.30		28.08		12.04		22.22		9.46
Net asset value per Unit, end of period	$	29.73	$	12.80	$	28.87	$	12.34	$	29.73	$	12.80	$	28.87	$	12.34

	Three Months Ended June 30,												Six Months Ended June 30,
	2023						2022						2023						2022
	Class A			Class Z			Class A			Class Z			Class A			Class Z			Class A			Class Z
Ratios to Average Limited Partners’ Capital: **
Net investment income (loss) ***		0.7	%		1.4	%		(3.3)	%		(2.5)	%		0.4	%		1.2	%		(4.6)	%		(3.9)	%
Operating expenses		3.4	%		2.7	%		3.2	%		2.4	%		3.4	%		2.6	%		3.2	%		2.5	%
Incentive fees		-	%		-	%		0.6	%		0.6	%		-	%		-	%		1.7	%		1.7	%
Total expenses		3.4	%		2.7	%		3.8	%		3.0	%		3.4	%		2.6	%		4.9	%		4.2	%
Total return:
Total return before incentive fees		7.0	%		7.2	%		9.6	%		9.8	%		5.9	%		6.3	%		32.0	%		32.5	%
Incentive fees		-	%		-	%		(0.7)	%		(0.6)	%		-	%		-	%		(2.1)	%		(2.1)	%
Total return after incentive fees		7.0	%		7.2	%		8.9	%		9.2	%		5.9	%		6.3	%		29.9	%		30.4	%

* Net investment income (loss) per Unit is calculated by dividing the interest income less total expenses by the average number of Units outstanding during the period. The net realized and unrealized gains (losses) per Unit is a balancing amount necessary to reconcile the change in net asset value per Unit with the other per unit information.

** Annualized (except for incentive fees).

*** Interest income less total expenses.

The above ratios and total return may vary for individual investors based on the timing of capital transactions during the period. Additionally, these ratios are calculated for the limited partner class using the limited partners’ share of income, expenses and average partners’ capital of the Partnership and include the income and expenses allocated from the Trading Company.

10

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

4. Financial Instrument Risks:

The Partnership trades Futures Interests. Futures and forwards represent contracts for delayed delivery of an instrument at a specified date and price.

The fair value of an exchange-traded contract is based on the settlement price quoted by the exchange on the day with respect to which fair value is being determined. If an exchange-traded contract could not have been liquidated on such day due to the operation of daily limits or other rules of the exchange, the settlement price will be equal to the settlement price on the first subsequent day on which the contract could be liquidated.

The General Partner estimates that, at any given time, approximately 25.0% to 36.8% of the Partnership’s contracts are traded over-the-counter.

In general, the risks associated with non-exchange-traded contracts are greater than those associated with exchange-traded contracts because of the greater risk of default by the counterparty to a non-exchange-traded contract. The Partnership has credit risk associated with counterparty nonperformance. As of the date of the financial statements, the credit risk associated with the instruments in which the Partnership trades is limited to the unrealized gain amounts reflected in the Statements of Financial Condition.

The Partnership also has credit risk because MS&Co. acts as the commodity futures broker, or the counterparty, with respect to most of the Partnership’s assets. Exchange-traded futures and exchange-traded forward contracts are fair valued on a daily basis, with variations in value settled on a daily basis. With respect to the Partnership’s non-exchange-traded forward currency contracts, there are no daily settlements of variation in value, nor is there any requirement that an amount equal to the net unrealized gains (losses) on such contracts be segregated. However, the Partnership is required to meet margin requirements equal to the net unrealized loss on open forward currency contracts in the Partnership’s accounts with the counterparty, which is accomplished by daily maintenance of the cash balance in a custody account held at MS&Co., for the benefit of MS&Co. With respect to those non-exchange-traded forward currency contracts, the Partnership is dependent upon the ability of MS&Co., the sole counterparty on all such contracts, to perform. The Partnership has a netting agreement with MS&Co. The primary terms are based on industry standard master netting agreements. This agreement, which seeks to reduce both the Partnership’s and MS&Co.’s exposure on non-exchange-traded forward currency contracts, should materially decrease the Partnership’s credit risk in the event of MS&Co.’s bankruptcy or insolvency.

The General Partner monitors and attempts to mitigate the Partnership’s risk exposure on a daily basis through financial, credit and risk management monitoring systems, and accordingly, believes that it has effective procedures for evaluating and limiting the credit and market risks to which the Partnership may be subject. These monitoring systems generally allow the General Partner to statistically analyze actual trading results with risk adjusted performance indicators and correlation statistics. In addition, online monitoring systems provide account analysis of U.S. Treasury bills, futures, forward and option contracts by sector, margin requirements, gain and loss transactions and collateral positions.

The Futures Interests traded, and the U.S. Treasury bills held, by the Partnership involve varying degrees of related market risk. Market risk is often dependent upon changes in the level or volatility of interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently, in its earnings, whether realized or unrealized, and cash flow. Gains and losses on open positions of exchange-traded futures and exchange-traded forward contracts are settled daily through variation margin. Gains and losses on non-exchange-traded forward currency contracts are settled upon termination of the contract.

In the ordinary course of business, the Partnership enters into contracts and agreements that contain various representations and warranties and which provide general indemnifications. The Partnership’s maximum exposure under these arrangements cannot be determined, as this could include future claims that have not yet been made against the Partnership. The General Partner considers the risk of any future obligation relating to these indemnifications to be remote.

11

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

Beginning in February 2022, the United States, the United Kingdom, the European Union, and a number of other nations imposed sanctions against Russia in response to Russia’s invasion of Ukraine, and these and other governments around the world may impose additional sanctions in the future as the conflict develops. The conflict and subsequent sanctions have created volatility in the price of various commodities and may have a negative impact on business activity globally, and therefore could affect the performance of the Partnership’s/Trading Company’s investments. Furthermore, uncertainties regarding the conflict between the two nations and the varying involvement of the United States and other NATO countries preclude prediction as to the ultimate impact on global economic and market conditions, and, as a result, presents material uncertainty and risk with respect to the Partnership/Trading Company and the performance of its investments or operations, and the ability of the Partnership/Trading Company to achieve its investment objectives. Additionally, to the extent that investors, service providers and/or other third parties have material operations or assets in Russia, Belarus, or Ukraine, they may have their operations disrupted and/or suffer adverse consequences related to the ongoing conflict.

5. Trading Activities:

The Partnership’s objective is to profit from speculative trading in Futures Interests. Therefore, the Trading Advisor will take speculative positions in Futures Interests where it feels the best profit opportunities exist for its trading strategy. As such, the average number of contracts outstanding in absolute quantities (the total of the open long and open short positions) has been presented as a part of the volume disclosure, as position direction is not an indicative factor in such volume disclosures.

All of the Futures Interests owned by the Partnership are held for trading purposes. The monthly average number of futures contracts traded during the three months ended June 30, 2023 and 2022 were 4,547 and 2,937, respectively. The monthly average number of futures contracts traded during the six months ended June 30, 2023 and 2022 were 4,457 and 3,085, respectively. The monthly average number of metals forward contracts traded during the three months ended June 30, 2023 and 2022 were 718 and 346, respectively. The monthly average number of metals forward contracts traded during the six months ended June 30, 2023 and 2022 were 639 and 450, respectively. The monthly average notional values of currency forward contracts traded during the three months ended June 30, 2023 and 2022 were $989,142,372 and $635,110,854, respectively. The monthly average notional values of currency forward contracts traded during the six months ended June 30, 2023 and 2022 were $872,791,428 and $649,241,059, respectively.

12

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

The following tables summarize the gross and net amounts recognized relating to the assets and liabilities of the Partnership’s derivative instruments and transactions eligible for offset subject to master netting agreements or similar arrangements as of June 30, 2023 and December 31, 2022, respectively.

			Gross Amounts		Amounts		Gross Amounts Not Offset in the
			Offset in the		Presented in the		Statements of Financial Condition
	Gross		Statements of		Statements of				Cash Collateral
	Amounts		Financial		Financial		Financial		Received/
June 30, 2023	Recognized		Condition		Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	4,813,183	$	(2,014,614)	$	2,798,569	$	-	$	-	$	2,798,569
Forwards		3,438,037		(3,007,614)		430,423		-		-		430,423
Total assets	$	8,251,220	$	(5,022,228)	$	3,228,992	$	-	$	-	$	3,228,992
Liabilities
Futures	$	(2,014,614)	$	2,014,614	$	-	$	-	$	-	$	-
Forwards		(3,007,614)		3,007,614		-		-		-		-
Total liabilities	$	(5,022,228)	$	5,022,228	$	-	$	-	$	-	$	-
Net fair value											$	3,228,992	*

			Gross Amounts		Amounts		Gross Amounts Not Offset in the
			Offset in the		Presented in the		Statements of Financial Condition
	Gross		Statements of		Statements of				Cash Collateral
	Amounts		Financial		Financial		Financial		Received/
December 31, 2022	Recognized		Condition		Condition		Instruments		Pledged*		Net Amount
Assets
Futures	$	3,786,495	$	(3,615,922)	$	170,573	$	-	$	-	$	170,573
Forwards		2,474,696		(2,021,304)		453,392		-		-		453,392
Total assets	$	6,261,191	$	(5,637,226)	$	623,965	$	-	$	-	$	623,965
Liabilities
Futures	$	(3,615,922)	$	3,615,922	$	-	$	-	$	-	$	-
Forwards		(2,021,304)		2,021,304		-		-		-		-
Total liabilities	$	(5,637,226)	$	5,637,226	$	-	$	-	$	-	$	-
Net fair value											$	623,965	*

* In the event of default by the Partnership, MS&Co., the Partnership’s commodity futures broker and the sole counterparty to the Partnership’s non-exchange-traded contracts, as applicable, has the right to offset the Partnership’s obligation with the Partnership’s cash and/or U.S. Treasury bills held by MS&Co., thereby minimizing MS&Co.’s risk of loss. In certain instances, MS&Co. may not post collateral and as such, in the event of default by MS&Co., the Partnership is exposed to the amount shown in the Statements of Financial Condition. In the case of exchange-traded contracts, the Partnership’s exposure to counterparty risk may be reduced since the exchange’s clearinghouse interposes its credit between buyer and seller and the clearinghouse’s guarantee funds may be available in the event of a default. In some instances, the actual collateral received and/or pledged may be more than the amount shown due to overcollateralization.

13

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

The following tables indicate the gross fair values of derivative instruments of futures and forward contracts as separate assets and liabilities as of June 30, 2023 and December 31, 2022, respectively.

	June 30, 2023
Assets
Futures Contracts
Currencies	$	195,727
Energy		112,363
Grains		339,297
Indices		1,144,500
Interest Rates U.S.		435,016
Interest Rates Non-U.S.		1,980,457
Livestock		312,827
Metals		154,550
Softs		138,446
Total unrealized appreciation on open futures contracts		4,813,183
Liabilities
Futures Contracts
Currencies		(12,867)
Energy		(425,569)
Grains		(441,964)
Indices		(328,957)
Interest Rates U.S.		(48,258)
Interest Rates Non-U.S.		(99,505)
Livestock		(100)
Metals		(63,187)
Softs		(594,207)
Total unrealized depreciation on open futures contracts		(2,014,614)
Net unrealized appreciation on open futures contracts	$	2,798,569	*
Assets
Forward Contracts
Currencies	$	2,467,311
Metals		970,726
Total unrealized appreciation on open forward contracts		3,438,037
Liabilities
Forward Contracts
Currencies		(2,381,817)
Metals		(625,797)
Total unrealized depreciation on open forward contracts		(3,007,614)
Net unrealized appreciation on open forward contracts	$	430,423	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized appreciation on open forward contracts” in the Statements of Financial Condition.

14

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

	December 31, 2022
Assets
Futures Contracts
Currencies	$	31,641
Energy		660,818
Grains		532,838
Indices		394,363
Interest Rates U.S.		318,625
Interest Rates Non-U.S.		1,615,714
Livestock		51,880
Metals		63,530
Softs		117,086
Total unrealized appreciation on open futures contracts		3,786,495
Liabilities
Futures Contracts
Currencies		(67,887)
Energy		(51,220)
Grains		(343,358)
Indices		(1,940,370)
Interest Rates U.S.		(211,976)
Interest Rates Non-U.S.		(790,578)
Livestock		(13,450)
Metals		(37,863)
Softs		(159,220)
Total unrealized depreciation on open futures contracts		(3,615,922)
Net unrealized appreciation on open futures contracts	$	170,573	*
Assets
Forward Contracts
Currencies	$	2,005,546
Metals		469,150
Total unrealized appreciation on open forward contracts		2,474,696
Liabilities
Forward Contracts
Currencies		(1,604,184)
Metals		(417,120)
Total unrealized depreciation on open forward contracts		(2,021,304)
Net unrealized appreciation on open forward contracts	$	453,392	**

* This amount is in “Net unrealized appreciation on open futures contracts” in the Statements of Financial Condition.

** This amount is in “Net unrealized appreciation on open forward contracts” in the Statements of Financial Condition.

15

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

The following table indicates the trading gains and losses, by market sector, on derivative instruments for the three and six months ended June 30, 2023 and 2022, respectively.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
Sector	2023			2022			2023			2022
Currencies	$	(211,072)		$	6,250,932		$	556,659		$	8,587,141
Energy		(1,104,581)			1,690,968			(1,728,829)			12,126,948
Grains		(636,722)			(569,483)			(797,510)			1,541,027
Indices		2,524,283			(257,523)			3,420,672			37,617
Interest Rates U.S.		552,758			1,900,841			588,908			2,937,115
Interest Rates Non-U.S.		1,768,812			3,597,313			304,484			4,823,544
Livestock		446,157			(8,809)			455,082			(70,297)
Metals		280,969			(96,802)			(482,767)			1,811,821
Softs		369,351			(189,085)			850,364			357,048
Total	$	3,989,955	***	$	12,318,352	***	$	3,167,063	***	$	32,151,964	***

*** This amount is in “Total trading results” in the Statements of Income and Expenses.

6. Fair Value Measurements:

Partnership’s and the Trading Company’s Fair Value Measurements. Fair value is defined as the value that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to fair values derived from unobservable inputs (Level 3). The level in the fair value hierarchy within which the fair value measurement in its entirety falls shall be determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The fair value of exchange-traded futures, forward and option contracts is determined by the various exchanges, and reflects the settlement price for each contract as of the close of business on the last business day of the reporting period. The fair value of foreign currency forward contracts is extrapolated on a forward basis from the spot prices quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period from various exchanges. The fair value of non-exchange-traded foreign currency option contracts is calculated by applying an industry standard model application for options valuation of foreign currency options, using as input the spot prices, interest rates and option implied volatilities quoted as of approximately 3:00 P.M. (E.T.) on the last business day of the reporting period. U.S. Treasury bills are valued at the last available bid price received from independent pricing services as of the close of the last business day of the reporting period.

The Partnership and the Trading Company consider prices for commodity futures, swap and option contracts to be based on unadjusted quoted prices in active markets for identical assets and liabilities (Level 1). The values of U.S. Treasury bills, non-exchange-traded forward, swap and certain option contracts for which market quotations are not readily available are priced by pricing services that derive fair values for those assets and liabilities from observable inputs (Level 2). As of June 30, 2023 and December 31, 2022 and for the periods ended June 30, 2023 and 2022, the Partnership and the Trading Company did not hold any derivative instruments that were priced at fair value using unobservable inputs through the application of the General Partner’s assumptions and internal valuation pricing models (Level 3).

16

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

June 30, 2023	Total		Level 1		Level 2		Level 3
Assets
Futures	$	4,813,183	$	4,813,183	$	-	$	-
Forwards		3,438,037		-		3,438,037		-
Total assets	$	8,251,220	$	4,813,183	$	3,438,037	$	-
Liabilities
Futures	$	2,014,614	$	2,014,614	$	-	$	-
Forwards		3,007,614		-		3,007,614		-
Total liabilities	$	5,022,228	$	2,014,614	$	3,007,614	$	-

December 31, 2022	Total		Level 1		Level 2		Level 3
Assets
Futures	$	3,786,495	$	3,786,495	$	-	$	-
Forwards		2,474,696		-		2,474,696		-
Total assets	$	6,261,191	$	3,786,495	$	2,474,696	$	-
Liabilities
Futures	$	3,615,922	$	3,615,922	$	-	$	-
Forwards		2,021,304		-		2,021,304		-
Total liabilities	$	5,637,226	$	3,615,922	$	2,021,304	$	-

The investment in the Trading Company measured using the net asset value per share practical expedient is not required to be included in the fair value hierarchy. Please refer to the Condensed Schedules of Investments as of June 30, 2023 and December 31, 2022, respectively.

7. Investment in the Trading Company:

On January 1, 2021, the assets allocated to WCM for trading were invested in CMF Winton, a limited partnership organized under the partnership laws of the State of New York. CMF Winton permits accounts managed by WCM using the Winton Futures Program, a proprietary, systematic trading system, to invest together in one trading vehicle. The General Partner is also the general partner of CMF Winton. Individual and pooled accounts currently managed by WCM, including the Partnership, are permitted to be limited partners of CMF Winton. The General Partner and WCM believe that trading through this structure promotes efficiency and economy in the trading process. The General Partner and WCM have agreed that WCM will trade the Partnership’s assets allocated to WCM at a level that is up to 1.5 times the amount of assets allocated, provided that the General Partner may instruct WCM to change such level in accordance with the investment management agreement from time to time.

The General Partner is not aware of any material changes to the trading program discussed above during the fiscal quarter ended June 30, 2023.

The Partnership’s/Trading Company’s trading of futures, forward, swap, and option contracts, if applicable, on commodities is done primarily on U.S. and foreign commodity exchanges. The Partnership/Trading Company engage in such trading through commodity brokerage accounts maintained with MS&Co.

Generally, a limited partner in the Trading Company may withdraw all or part of its capital contribution and undistributed profits, if any, from the Trading Company as of the end of any month (the “Redemption Date”) after a request has been made to the Trading Manager at least three days in advance of the Redemption Date. Such withdrawals are classified as a liability when the limited partner elects to redeem and informs the Trading Company. However, a limited partner may request a withdrawal as of the end of any day if such request is received by the Trading Manager at least three days in advance of the proposed withdrawal date.

17

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

Management fees, General Partner fees, ongoing selling fees and incentive fees are charged at the Partnership level. All clearing fees paid to MS&Co. are borne directly by the Partnership for its direct trading. In addition, clearing fees are borne by the Trading Company and allocated to the Trading Company’s limited partners, including the Partnership. Professional fees are borne by the Trading Company and allocated to the Partnership, and also charged directly at the Partnership level.

As of June 30, 2023 and December 31, 2022, the Partnership owned 100% of CMF Winton. It is the Partnership’s intention to continue to invest in the Trading Company. The performance of the Partnership is directly affected by the performance of the Trading Company. Expenses to investors as a result of investment in the Trading Company are approximately the same as they would be if the Partnership traded directly and redemption rights are not affected.

Summarized information reflecting the total assets, liabilities and partners’ capital of the Trading Company is shown in the following tables:

	June 30, 2023
	Total Assets		Total Liabilities		Total Capital
CMF Winton	$	56,702,006	$	172,571	$	56,529,435

	December 31, 2022
	Total Assets		Total Liabilities		Total Capital
CMF Winton	$	49,558,467	$	155,684	$	49,402,783

Summarized information reflecting the net investment income (loss), total trading results and net income (loss) of the Trading Company is shown in the following tables:

	For the three months ended June 30, 2023
	Net Investment   Income (Loss)		Total Trading   Results		Net Income (Loss)
CMF Winton	$	446,993	$	6,363,309	$	6,810,302

	For the six months ended June 30, 2023
	Net Investment   Income (Loss)		Total Trading   Results		Net Income (Loss)
CMF Winton	$	802,477	$	5,488,751	$	6,291,228

	For the three months ended June 30, 2022
	Net Investment   Income (Loss)		Total Trading   Results		Net Income (Loss)
CMF Winton	$	13,429	$	3,841,891	$	3,855,320

	For the six months ended June 30, 2022
	Net Investment   Income (Loss)		Total Trading   Results		Net Income (Loss)
CMF Winton	$	(42,275)	$	12,873,897	$	12,831,622

18

Ceres Classic L.P.

Notes to Financial Statements

(Unaudited)

Summarized information reflecting the Partnership’s investment in and the Partnership’s pro-rata share of the results of operations of the Trading Company is shown in the following tables:

June 30, 2023

For the three months ended June 30, 2023

% of

Expenses

Net

Partners’

Fair

Income

Clearing

Professional

Income

Investment

Redemptions

Funds

Capital

Value

(Loss)

Fees

Fees

(Loss)

Objective

Permitted

CMF Winton

35.29%

$

56,689,942

$

6,882,103

$

53,783

$

18,018

$

6,810,302

Commodity Portfolio

Monthly

June 30, 2023

For the six months ended June 30, 2023

% of

Expenses

Net

Partners’

Fair

Income

Clearing

Professional

Income

Investment

Redemptions

Funds

Capital

Value

(Loss)

Fees

Fees

(Loss)

Objective

Permitted

CMF Winton

35.29%

$

56,689,942

$

6,406,919

$

79,723

$

35,968

$

6,291,228

Commodity Portfolio

Monthly

December 31, 2022

For the three months ended June 30, 2022

% of

Expenses

Net

Partners’

Fair

Income

Clearing

Professional

Income

Investment

Redemptions

Funds

Capital

Value

(Loss)

Fees

Fees

(Loss)

Objective

Permitted

CMF Winton

31.41%

$

49,515,860

$

3,897,530

$

25,209

$

17,001

$

3,855,320

Commodity Portfolio

Monthly

December 31, 2022

For the six months ended June 30, 2022

% of

Expenses

Net

Partners’

Fair

Income

Clearing

Professional

Income

Investment

Redemptions

Funds

Capital

Value

(Loss)

Fees

Fees

(Loss)

Objective

Permitted

CMF Winton

31.41%

$

49,515,860

$

12,936,404

$

70,781

$

34,001

$

12,831,622

Commodity Portfolio

Monthly

8. Subsequent Events:

The General Partner evaluates events that occur after the balance sheet date but before and up until financial statements are available to be issued. The General Partner has assessed the subsequent events through the date the financial statements were issued and has determined that there were no subsequent events requiring adjustment to or disclosure in the financial statements.

19

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

Liquidity and Capital Resources

The Partnership does not have, nor does it expect to have, any capital assets. The Partnership does not engage in sales of goods or services. Its assets are its (i) investment in the Trading Company, (ii) redemptions receivable from the Trading Company, (iii) equity in trading account, consisting of restricted and unrestricted cash, net unrealized appreciation on open futures contracts and net unrealized appreciation on open forward contracts, as applicable, and (iv) interest receivable. Because of the low margin deposits normally required in commodity futures trading, relatively small price movements may result in substantial losses to the Partnership, through its direct investments. While substantial losses could lead to a material decrease in liquidity, no such illiquidity occurred in the second quarter of 2023.

The Partnership’s/Trading Company’s investment in Futures Interests may, from time to time, be illiquid. Most U.S. futures exchanges limit fluctuations in prices during a single day by regulations referred to as “daily price fluctuation limits” or “daily limits.” Trades may not be executed at prices beyond the daily limit. If the price for a particular futures or option contract has increased or decreased by an amount equal to the daily limit, positions in that futures or option contract can neither be taken nor liquidated unless traders are willing to effect trades at or within the limit. Futures prices have occasionally moved the daily limit for several consecutive days with little or no trading. These market conditions could prevent the Partnership/Trading Company from promptly liquidating its futures or option contracts and result in restrictions on redemptions.

There is no limitation on daily price movements in trading forward contracts on foreign currencies. The markets for some world currencies have low trading volume and are illiquid, which may prevent the Partnership/Trading Company from trading in potentially profitable markets or prevent the Partnership/Trading Company from promptly liquidating unfavorable positions in such markets, subjecting it to substantial losses. Either of these market conditions could result in restrictions on redemptions. For the periods covered by this report, illiquidity has not materially affected the Partnership’s/Trading Company’s assets.

Other than the risks inherent in commodity futures, forwards, options, swaps and other derivatives trading and U.S. Treasury bills and money market mutual fund securities, the General Partner knows of no trends, demands, commitments, events or uncertainties at the present time that are reasonably likely to result in the Partnership’s/Trading Company’s liquidity increasing or decreasing in any material way.

The Partnership’s capital consists of the capital contributions of the partners as increased or decreased by net realized and/or unrealized gains or losses on trading and by expenses, interest income, subscriptions and redemptions of Units.

For the six months ended June 30, 2023, the Partnership’s capital increased 1.9% from $157,641,048 to $160,645,685. This increase was attributable to a net income of $8,997,485 which was partially offset by redemptions of 209,147.781 Class A limited partner Units totaling $5,992,848. Future redemptions could impact the amount of funds available for investments in commodity contract positions in subsequent periods.

Other than as discussed above, there are no known material trends, favorable or unfavorable, that would affect, nor any expected material changes to, the Partnership’s capital resource arrangements at the present time.

Off-Balance Sheet Arrangements and Contractual Obligations

The Partnership does not have any off-balance sheet arrangements, nor does it have contractual obligations or commercial commitments to make future payments, that would affect its liquidity or capital resources.

Critical Accounting Policies

The preparation of financial statements in conformity with GAAP requires the General Partner to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting periods. The General Partner believes that the estimates utilized in preparing the financial statements are reasonable. Actual results could differ from those estimates. The Partnership’s significant accounting policies are described in detail in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies,” of the Financial Statements.

20

The Partnership/Trading Company records all investments at fair value in its financial statements, with changes in fair value reported as a component of net realized gains (losses) and net change in unrealized gains (losses) in the Statements of Income and Expenses.

Results of Operations

During the Partnership’s second quarter of 2023, the net asset value per Unit for Class A increased 7.0% from $27.78 to $29.73 as compared to an increase of 8.9% during the second quarter of 2022. During the Partnership’s second quarter of 2023, the net asset value per Unit for Class Z increased 7.2% from $11.94 to $12.80 as compared to an increase of 9.2% during the second quarter of 2022. The Partnership experienced a net trading gain before fees and expenses in the second quarter of 2023 of $10,353,264. Gains were primarily attributable to the Partnership’s trading of Futures Interests in currencies, indices, U.S. and non-U.S. interest rates, livestock, metals and softs and were partially offset by losses in energy and grains. The Partnership experienced a net trading gain before fees and expenses in the second quarter of 2022 of $16,160,243. Gains were primarily attributable to the Partnership’s trading of Futures Interests in currencies, energy, U.S. and non-U.S. interest rates and were partially offset by losses in grains, indices, livestock, metals and softs.

During the second quarter, the Partnership’s largest gains for the quarter were recorded within the global fixed income markets primarily during June from short positions in European and U.S. government debt futures as prices dropped on expectations the European Central Bank and the U.S. Federal Reserve needed to maintain their hawkish interest rate policies. In global stock indices, long futures positions in Asian equity indices profited as prices rose throughout the quarter amid economic data supporting investors’ “risk-on” stance. Additional gains were recorded from long futures positions in European equity indices during April and June. In the currency markets, gains were achieved from short positions in the Japanese yen as the value of the yen declined against the U.S. dollar throughout a majority of the second quarter on expectations the Bank of Japan would support its dovish monetary policy while the U.S. Federal Reserve was expected to continue its restrictive rate policy. Further currency gains were recorded from long Mexican peso positions from April through June. In the agricultural sector, gains were recorded during April from long positions in sugar futures as prices climbed to an 11-year high amid adverse weather in key growing regions and supply tightness. Additional agricultural gains were recorded from long positions live cattle futures as prices trended higher throughout the quarter. In the metals, gains were recorded from short positions in copper futures as industrial metals prices trended lower during May. A portion of the Partnership’s overall gains for the second quarter was offset by losses incurred in the energy markets from short-term volatile price movement in Brent crude oil and the distillate products during much of the quarter. Further losses were experienced from short positions in Henry Hub natural gas futures during June as U.S. prices climbed higher.

During the Partnership’s six months ended June 30, 2023, the net asset value per Unit for Class A increased 5.9% from $28.08 to $29.73 as compared to an increase of 29.9% during the six months ended June 30, 2022. During the Partnership’s six months ended June 30, 2023, the net asset value per Unit for Class Z increased 6.3% from $12.04 to $12.80 as compared to an increase of 30.4% during the six months ended June 30, 2022. The Partnership experienced a net trading gain before fees and expenses in the six months ended June 30, 2023 of $8,655,814. Gains were primarily attributable to the Partnership’s trading of Futures Interests in currencies, indices, U.S. interest rates, livestock and softs and were partially offset by losses in energy, grains, non-U.S. interest rates and metals. The Partnership experienced a net trading gain before fees and expenses in the six months ended June 30, 2022 of $45,025,861. Gains were primarily attributable to the Partnership’s trading of Futures Interests in currencies, energy, grains, U.S. and non-U.S. interest rates, metals and softs and were partially offset by losses in indices and livestock.

During the first six months of the year, the Partnership’s largest gains for the first six months of the year were recorded in global stock indices from long positions in European equity index futures during January, February, April, and June as investor appetite for risk assets in the region boosted stock prices. Additional gains in the sector were recorded from long positions in Asian equity index futures as Asian stock prices trended higher throughout a majority of the second quarter. In the agricultural markets, trading gains were achieved from long positions in sugar futures during January, March, and April as sugar prices rallied to a multi-year high amid supply concerns. Smaller gains in the agricultural sector were recorded from long positions in live cattle futures during January, February, and throughout the second quarter. In currencies, gains were recorded during February, April, May, and June from short positions in the Japanese yen as the value of the yen declined against the U.S. dollar on expectations the Bank of Japan would continue to support its dovish monetary policy. Further currency gains were recorded from long positions in the Mexican peso as the value of the peso strengthened against the U.S. dollar for much of the first half of the year. In global fixed income, gains were recorded from short positions in U.S. government debt futures as prices declined on expectations the Federal Reserve would maintain its hawkish interest rate policy.

21

A portion of the Partnership’s gains for the first six months of the year was offset by losses incurred in the energy markets from futures positions in crude oil and the distillate products as prices moved without consistent direction throughout a majority of the first half of the year amid the lack of a consensus regarding oil supply/demand. Additional losses for the first six months of the year were recorded in the metals markets from positions in gold and silver futures during February and March as precious metals prices experienced choppy price movement amid uncertainty in the financial markets and fluctuations in the overall value of the U.S. dollar against is peers worldwide.

Commodity markets are highly volatile. Broad price fluctuations and rapid inflation increase not only the risk involved in commodity trading, but also the possibility of profit. The profitability of the Partnership depends on the existence of major price trends and the ability of the Trading Advisor to correctly identify those price trends. Price trends are influenced by, among other things, changing supply and demand relationships, weather, governmental, agricultural, commercial and trade programs and policies, national and international political and economic events and changes in interest rates. To the extent that market trends exist and the Trading Advisor is able to identify them, the Partnership expects to increase capital through operations.

The Partnership receives monthly interest on 100% of the average daily equity maintained in cash in the Partnership’s account during each month at a rate equal to 100% of the monthly average of the 4-week U.S. Treasury bill discount rate. For the avoidance of doubt, the Partnership will not receive interest on amounts in the futures brokerage account that are committed to margin. Any interest earned on the Partnership’s cash account in excess of the amounts described above, if any, will be retained by MS&Co. and/or shared with the General Partner. All interest earned on U.S. Treasury bills and money market fund securities will be retained by the Partnership, as applicable. Interest income for the three and six months ended June 30, 2023 increased by $1,398,281 and $2,766,639, respectively, as compared to the corresponding periods in 2022. The increase in interest income was primarily due to higher interest rates during the three and six months ended June 30, 2023 as compared to the corresponding periods in 2022. Interest earned by the Partnership will increase the net asset value of the Partnership. The amount of interest income earned by the Partnership depends on (1) the average daily equity maintained in cash in the Partnership’s accounts, (2) the amount of U.S. Treasury bills and/or money market mutual fund securities held by the Partnership and (3) interest rates over which none of the Partnership or MS&Co. has control.

Certain clearing fees are based on the number of trades executed by the Trading Advisors for the Partnership. Accordingly, they must be compared in relation to the number of trades executed during the period. Clearing fees for the three and six months ended June 30, 2023 increased by $39,966 and $74,106, respectively, as compared to the corresponding periods in 2022. The increase in clearing fees was primarily due to an increase in the number of trades made by the Partnership during the three and six months ended June 30, 2023 as compared to the corresponding periods in 2022.

Ongoing placement agent fees are calculated as a percentage of the Partnership’s Class A adjusted net assets on the first day of each month and are affected by trading performance, subscriptions, and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Ongoing placement agent fees for the three and six months ended June 30, 2023 decreased by $13,666 and increased by $20,051, respectively, as compared to the corresponding periods in 2022. The decrease was primarily due to a decrease in Class A adjusted net assets during the three months ended June 30, 2023 as compared to the corresponding period in 2022. The increase was primarily due to an increase in Class A adjusted net assets during the six months ended June 30, 2023 as compared to the corresponding period in 2022

General Partner fees are paid to the General Partner for administering the business and affairs of the Partnership. The General Partner’s fees are calculated as a percentage of the Partnership’s adjusted net asset value as of the beginning of each month and are affected by trading performance and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. General Partner’s fees for the three and six months ended June 30, 2023 decreased by $14,097 and increased by $19,838, respectively, as compared to the corresponding periods in 2022. The decrease was primarily due to a decrease in average net assets during the three months ended June 30, 2023 as compared to the corresponding period in 2022. The increase was primarily due to an increase in average net assets during the six months ended June 30, 2023 as compared to the corresponding period in 2022. Effective January 1, 2021, the Partnership directly pays the brokerage fees and other transaction-related fees and expenses, as incurred and also pays its ongoing administrative, operating, offering and organizational expenses (including, but not limited to, periodic legal, accounting, administrative, filing, reporting and data processing fees) and its pro rata share of such expenses of any trading company to which the Partnership has allocated assets.

22

Management fees are calculated as a percentage of the Partnership’s adjusted net asset value as of the beginning of each month and are affected by trading performance and redemptions. Accordingly, they must be compared in relation to the fluctuations in the monthly net asset values. Management fees for the three and six months ended June 30, 2023 decreased by $10,473 and increased by $47,770, respectively, as compared to the corresponding periods in 2022. The decrease was primarily due to a decrease in average net assets during the three months ended June 30, 2023 as compared to the corresponding period in 2022. The increase was primarily due to an increase in average net assets during the six months ended June 30, 2023 as compared to the corresponding period in 2022.

Incentive fees are based on the new trading profits generated by the Trading Advisors at the end of the year as defined in the management agreement among the Partnership, the General Partner and the relevant Trading Advisor. Trading performance for the three and six months ended June 30, 2023 resulted in incentive fees of $0 and $0, respectively. Trading performance for the three and six months ended June 30, 2022 resulted in incentive fees of $1,025,005 and $2,696,235, respectively. To the extent that a Trading Advisor incurs a loss for the Partnership, the Trading Advisor will not be paid incentive fees until such Trading Advisor recovers any net loss incurred and earns additional new trading profits for the Partnership.

In allocating substantially all of the assets of the Partnership among the Trading Advisors, the General Partner considers, among other factors, the Trading Advisors’ past performance, trading style, volatility of markets traded and fee requirements. The General Partner may modify or terminate the allocation of assets to the Trading Advisors and allocate assets to additional advisors at any time.

As of June 30, 2023 and March 31, 2023, the Partnership’s assets were allocated among the Trading Advisors in the following approximate percentages:

Advisor	June 30, 2023		June 30, 2023 (percentage of     Partners’ Capital)		March 31, 2023		March 31, 2023 (percentage of     Partners’ Capital)
Campbell	$	41,484,322		26%	$	41,114,825		27%
EMC		13,011,865		8%		12,152,965		8%
Graham		40,146,497		25%		38,020,157		25%
WCM		56,732,725		35%		50,703,796		33%
Unallocated		9,270,276		6%		10,597,527		7%

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

Introduction

The Partnership and the Trading Company are commodity pools engaged primarily in the speculative trading of Futures Interests. The market-sensitive instruments held by the Partnership are acquired for speculative trading purposes only and, as a result, all or substantially all of the Partnership’s assets are at risk of trading loss. Unlike an operating company, the risk of market-sensitive instruments is inherent to the primary business activity of the Partnership.

The Futures Interests on such contracts traded by the Partnership involve varying degrees of related market risk. Market risk is often dependent upon changes in the level or volatility of held interest rates, exchange rates, and prices of financial instruments and commodities, factors that result in frequent changes in the fair value of the Partnership’s open positions, and consequently in its earnings, whether realized or unrealized, and cash flow. Gains and losses on open positions of exchange-traded futures, exchange-traded forward and exchange-traded futures-styled option contracts are settled daily through variation margin. Gains and losses on non-exchange-traded forward currency contracts and forward currency option contracts are settled upon termination of the contract. Gains and losses on non-exchange-traded forward currency option contracts are settled on an agreed-upon settlement date.

The Partnership’s total market risk may increase or decrease as it is influenced by a wide variety of factors, including, but not limited to, the diversification among the Partnership’s open positions, the volatility present within the markets, and the liquidity of the markets.

The face value of the market sector instruments held by the Partnership is typically many times the applicable margin requirements. Margin requirements generally range between 2% and 15% of contract face value. Additionally, the use of leverage causes the face value of the market sector instruments held by the Partnership typically to be many times the total capitalization of the Partnership.

23

The Partnership’s past performance is no guarantee of its future results. Any attempt to numerically quantify the Partnership’s market risk is limited by the uncertainty of its speculative trading. The Partnership’s speculative trading and use of leverage may cause future losses and volatility (i.e., “risk of ruin”) that far exceed the Partnership’s experience to date as discussed under the “Partnership’s Value at Risk in Different Market Sectors” section and significantly exceed the Value at Risk tables disclosed.

Limited partners will not be liable for losses exceeding the current net asset value of their investment.

Quantifying the Partnership’s and the Trading Company’s Trading Value at Risk

The following quantitative disclosures regarding the Partnership’s/Trading Company’s market risk exposures contain “forward-looking statements” within the meaning of the safe harbor from civil liability provided for such statements by the Private Securities Litigation Reform Act of 1995 (set forth in Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)). All quantitative disclosures in this section are deemed to be forward-looking statements for purposes of the safe harbor, except for statements of historical fact.

The Partnership/Trading Company accounts for open positions on the basis of fair value accounting principles. Any loss in the market value of the Partnership’s open positions is directly reflected in the Partnership’s/Trading Company’s earnings and cash flow.

The Partnership’s/Trading Company’s risk exposure in the market sectors traded by the Trading Advisors is estimated below in terms of Value at Risk. Please note that the Value at Risk model is used to numerically quantify market risk for historic reporting purposes only and is not utilized by either Ceres or the Trading Advisor in their daily risk management activities.

Value at Risk is a measure of the maximum amount which the Partnership/Trading Company could reasonably be expected to lose in a given market sector. However, the inherent uncertainty of the Partnership’s/Trading Company’s speculative trading and the recurrence of market movements far exceeding expectations in the markets traded by the Partnership/Trading Company could result in actual trading or non-trading losses far beyond the indicated Value at Risk or the Partnership’s/Trading Company’s experience to date (i.e., “risk of ruin”). In light of the foregoing, as well as the risks and uncertainties intrinsic to all future projections, the inclusion of the quantification in this section should not be considered to constitute any assurance or representation that the Partnership’s/Trading Company’s losses in any market sector will be limited to Value at Risk or by the Partnership’s/Trading Company’s attempts to manage its market risk.

Exchange margin requirements have been used by the Partnership/Trading Company as the measure of its Value at Risk. Margin requirements are set by exchanges to equal or exceed the maximum losses reasonably expected to be incurred in the fair value of any given contract in 95%-99% of any one-day interval. The margin levels are established by dealers and exchanges using historical price studies as well as an assessment of current market volatility (including the implied volatility of the options on a given futures contract) and economic fundamentals to provide a probabilistic estimate of the maximum expected near-term one-day price fluctuation.

Value at Risk tables represent a probabilistic assessment of the risk of loss in market sensitive instruments. The first trading Value at Risk table reflects the market sensitive instruments held by the Partnership directly and through its investments in the Trading Company. The remaining trading Value at Risk tables reflect the market sensitive instruments held by the Partnership directly (i.e. in the managed accounts in the Partnership’s name traded by certain Trading Advisors) and indirectly by the Trading Company separately. There have been no material changes in the trading Value at Risk, non-trading risk and risk management information previously disclosed in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2022.

24

The following table indicates the trading Value at Risk associated with the Partnership’s open positions by market category as of June 30, 2023. As of June 30, 2023, the Partnership’s total capitalization was $160,645,685.

June 30, 2023

Market Sector	Value at Risk		% of Total     Capitalization
Currencies	$	8,805,975		5.48	%
Energy		1,541,583		0.96
Grains		590,458		0.37
Indices		6,801,044		4.23
Interest Rates U.S.		1,580,899		0.98
Interest Rates Non-U.S.		4,094,410		2.55
Livestock		399,740		0.25
Metals		2,804,632		1.75
Softs		1,211,698		0.75
Total	$	27,830,439		17.32	%

The following table indicates the trading Value at Risk associated with the Partnership’s open positions by market category as of December 31, 2022. As of December 31, 2022, the Partnership’s total capitalization was $157,641,048.

December 31, 2022

Market Sector	Value at Risk		% of Total     Capitalization
Currencies	$	7,903,175		5.01	%
Energy		1,421,469		0.90
Grains		1,283,398		0.81
Indices		6,000,297		3.81
Interest Rates U.S.		1,568,852		1.00
Interest Rates Non-U.S.		3,204,334		2.03
Livestock		175,421		0.11
Metals		1,308,078		0.83
Softs		1,506,361		0.96
Total	$	24,371,385		15.46	%

25

The following tables indicate the trading Value at Risk associated with the Partnership’s/Trading Company’s open positions by market category as of June 30, 2023 and December 31, 2022, and the highest, lowest and average values during the three months ended June 30, 2023 and for the twelve months ended December 31, 2022. All open position trading risk exposures of the Partnership have been included in calculating the figures set forth below.

As of June 30, 2023, the Partnership’s total capitalization was $160,645,685.

June 30, 2023

						Three Months Ended June 30, 2023
Market Sector	Value at Risk		% of Total     Capitalization			High   Value at Risk		Low   Value at Risk		Average   Value at Risk*
Currencies	$	7,286,067		4.53	%	$	10,759,205	$	7,122,436	$	8,657,130
Energy		1,080,814		0.67			1,588,596		898,961		1,222,437
Grains		430,158		0.27			723,061		430,158		569,817
Indices		5,545,355		3.45			6,129,956		3,326,357		5,132,810
Interest Rates U.S.		1,028,506		0.64			1,235,478		413,207		818,366
Interest Rates Non-U.S.		2,972,911		1.85			3,224,823		1,379,088		2,410,037
Livestock		121,330		0.08			204,325		113,506		155,686
Metals		1,783,876		1.11			2,193,239		1,358,208		1,860,559
Softs		636,820		0.40			1,071,817		636,820		822,186
Total	$	20,885,837		13.00	%

*Average of daily Values at Risk.

As of December 31, 2022, the Partnership’s total capitalization was $157,641,048.

December 31, 2022

						Twelve Months Ended December 31, 2022
Market Sector	Value at Risk		% of Total     Capitalization			High   Value at Risk		Low   Value at Risk		Average   Value at Risk*
Currencies	$	7,254,981		4.60	%	$	9,072,484	$	482,032	$	5,926,990
Energy		1,154,988		0.73			2,495,372		713,894		1,561,544
Grains		913,813		0.58			1,286,439		433,472		855,219
Indices		5,195,015		3.29			7,264,482		1,418,059		3,424,394
Interest Rates U.S.		1,080,204		0.69			1,242,478		412,516		806,983
Interest Rates Non-U.S.		2,331,119		1.48			2,734,726		677,182		1,541,348
Livestock		85,991		0.05			144,815		17,243		60,328
Metals		911,945		0.58			1,763,746		282,198		1,058,390
Softs		768,676		0.49			961,359		384,147		648,677
Total	$	19,696,732		12.49	%

*Annual average of daily Values at Risk.

26

As of June 30, 2023, the Trading Company’s total capitalization was $56,529,435 and the Partnership owned 100% of the Trading Company. The Partnership invests a portion of its assets in the Trading Company. The Trading Company’s Value at Risk as of June 30, 2023 was as follows:

June 30, 2023

						Three Months Ended June 30, 2023
Market Sector	Value at Risk		% of Total     Capitalization			High   Value at Risk		Low   Value at Risk		Average   Value at Risk*
Currencies	$	1,519,908		2.69	%	$	2,053,848	$	1,161,792	$	1,589,104
Energy		460,769		0.82			548,563		297,810		443,977
Grains		160,300		0.28			396,253		158,388		305,001
Indices		1,255,689		2.22			1,328,155		889,605		1,205,674
Interest Rates U.S.		552,393		0.98			579,007		220,398		356,123
Interest Rates Non-U.S.		1,121,499		1.98			1,124,600		547,534		784,711
Livestock		278,410		0.49			350,185		278,410		317,151
Metals		1,020,756		1.81			1,020,756		665,499		803,040
Softs		574,878		1.02			720,370		554,037		638,043
Total	$	6,944,602		12.29	%

*Average of daily Values at Risk.

As of December 31, 2022, the Trading Company’s total capitalization was $49,402,783 and the Partnership owned 100% of the Trading Company. The Partnership invests a portion of its assets in the Trading Company. The Trading Company’s Value at Risk as of December 31, 2022 was as follows:

December 31, 2022

						Twelve Months Ended December 31, 2022
Market Sector	Value at Risk		% of Total     Capitalization			High   Value at Risk		Low   Value at Risk		Average   Value at Risk*
Currencies	$	648,194		1.31	%	$	2,446,867	$	631,176	$	1,655,803
Energy		266,481		0.54			871,851		105,629		471,630
Grains		369,585		0.75			499,620		90,640		252,207
Indices		805,282		1.63			1,156,070		237,224		783,593
Interest Rates U.S.		488,648		0.99			501,160		118,450		315,235
Interest Rates Non-U.S.		873,215		1.77			873,215		242,793		522,139
Livestock		89,430		0.18			124,795		23,320		69,858
Metals		396,133		0.80			882,549		315,801		559,015
Softs		737,685		1.49			744,499		179,313		367,055
Total	$	4,674,653		9.46	%

*Annual average of daily Values at Risk.

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Item 4. Controls and Procedures.

The Partnership’s disclosure controls and procedures are designed to ensure that information required to be disclosed by the Partnership on the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods expected in the SEC’s rules and forms. Disclosure controls and procedures include controls and procedures designed to ensure that information required to be disclosed by the Partnership in the reports it files is accumulated and communicated to management, including the President (the General Partner’s principal executive officer) and Chief Financial Officer (“CFO”) (the General Partner’s principal financial officer) of the General Partner, to allow for timely decisions regarding required disclosure and appropriate SEC filings.

The General Partner is responsible for ensuring that there is an adequate and effective process for establishing, maintaining and evaluating disclosure controls and procedures for the Partnership’s external disclosures.

The General Partner’s President and CFO have evaluated the effectiveness of the Partnership’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2023 and, based on that evaluation, the General Partner’s President and CFO have concluded that, at that date, the Partnership’s disclosure controls and procedures were effective.

The Partnership’s internal control over financial reporting is a process under the supervision of the General Partner’s President and CFO to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. These controls include policies and procedures that:

• pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Partnership;

• provide reasonable assurance that (i) transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and (ii) the Partnership’s receipts are handled and expenditures are made only pursuant to authorizations of the General Partner; and

• provide reasonable assurance regarding prevention or timely detection and correction of unauthorized acquisition, use or disposition of the Partnership’s assets that could have a material effect on the financial statements.

There were no changes in the Partnership’s internal control over financial reporting during the fiscal quarter ended June 30, 2023 that materially affected, or are reasonably likely to materially affect, the Partnership’s internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings.

This section describes the major pending legal proceedings, other than ordinary routine litigation incidental to the business, to which MS&Co. or its subsidiaries is a party or to which any of their property is subject. There are no material legal proceedings pending against the Partnership or the General Partner.

On June 1, 2011, Morgan Stanley & Co. Incorporated converted from a Delaware corporation to a Delaware limited liability company. As a result of that conversion, Morgan Stanley & Co. Incorporated is now named Morgan Stanley & Co. LLC (“MS&Co.” or “the Company”).

MS&Co. is a wholly-owned, indirect subsidiary of Morgan Stanley, a Delaware holding company. Morgan Stanley files periodic reports with the SEC as required by the Securities Exchange Act of 1934, as amended (the “Exchange Act”) which include current descriptions of material litigation and material proceedings and investigations, if any, by governmental and/or regulatory agencies or self-regulatory organizations concerning Morgan Stanley and its subsidiaries, including MS&Co. As a consolidated subsidiary of Morgan Stanley, MS&Co. does not file its own periodic reports with the SEC that contain descriptions of material litigation, proceedings and investigations. As a result, we refer you to the “Legal Proceedings” section of Morgan Stanley’s SEC 10-K filings for 2022, 2021, 2020, 2019, and 2018. In addition, MS&Co. annually prepares an Audited, Consolidated Statement of Financial Condition (“Audited Financial Statement”) that is publicly available on Morgan Stanley’s website at www.morganstanley.com. We refer you to the Commitments, Guarantees and Contingencies – Legal section of MS&Co.’s 2022 Audited Financial Statement.

In addition to the matters described in those filings, in the normal course of business, each of Morgan Stanley and MS&Co. has been named, from time to time, as a defendant in various legal actions, including arbitrations, class actions, and other litigation, as well as being subject to regulatory investigations arising in connection with its activities as a financial services institution. Certain of the actual or threatened legal actions include claims for substantial penalties, compensatory and/or punitive damages or claims for indeterminate amounts of penalties or damages.

Each of Morgan Stanley and MS&Co. is also involved, from time to time, other reviews, investigations and proceedings (both formal and informal) by governmental and self-regulatory agencies regarding MS&Co.’s business, and involving, among other matters, sales, trading, financing, prime brokerage, market-making activities, investment banking advisory services, capital market activities, financial products or offerings sponsored, underwritten or sold by MS&Co., wealth and investment management services, and accounting and operational matters, certain of which may result in adverse judgments, settlements, fines, penalties, injunctions, limitations on our ability to conduct certain business, or other relief.

MS&Co. is a Delaware limited liability company with its main business office located at 1585 Broadway, New York, New York 10036. Among other registrations and memberships, MS&Co. is registered as a futures commission merchant and is a member of the National Futures Association.

During the preceding five years, the following administrative, civil, or criminal actions pending, on appeal or concluded against MS&Co. or any of its principals are material within the meaning of CFTC Rule 4.24(l)(2) or 4.34(k)(2):

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Regulatory and Governmental Matters.

The Company has been responding to requests for information from the Enforcement Division of the U.S. Securities and Exchange Commission and the United States Attorney’s Office for the Southern District of New York in connection with their investigations into various aspects of the Company’s blocks business, certain related sales and trading practices, and applicable controls (the “Investigations”). The Investigations are focused on whether the Company and/or its employees shared and/or used information regarding impending block transactions in violation of federal securities laws and regulations. The Company continues to cooperate with, and remains engaged in discussions regarding the potential resolution of, the Investigations. There can be no assurance that these discussions and continuing engagement will lead to resolution of either matter. The Company also faces potential civil liability arising from claims that have been or may be asserted by, among others, block transaction participants who contend they were harmed or disadvantaged including, among other things, as a result of a share price decline allegedly caused by the activities of the Company and/or its employees, or as a result of the Company’s and/or its employees’ failure to adhere to applicable laws and regulations. In addition, the Company has responded to demands from shareholders under Section 220 of the Delaware General Corporation Law for books and records concerning the Investigations.

On September 30, 2020, the SEC entered into a settlement order with MS&Co. settling an administrative action which relates to MS&Co.’s violations of the order marking requirements of Regulation SHO of the Exchange Act resulting from its improper use of aggregation units in structuring the Firm’s equity swaps business. The order found that MS&Co. improperly operated its equity swaps business without netting certain “long” and “short” positions as required by Rule 200(c) of Regulation SHO. The order found that the long exposure to an equity security (the “Long Unit”) and the short exposure to an equity security (the “Short Unit”) were not independent from one another and did not have separate trading strategies or objectives without regard to each other, and that the Long and Short Units were not eligible for the exception in Rule 200(f) of Regulation SHO. The order found that MS&Co. willfully violated Section 200(g) of Regulation SHO. MS&Co. consented, without admitting or denying the findings and without adjudication of any issue of law or fact, to a censure; to cease and desist from committing or causing future violations; to pay a civil penalty of $5 million; and to comply with the undertaking enumerated in the order.

The Firm has reached agreements in principle with two regulatory agencies—the SEC for $125 million and the CFTC for $75 million— to resolve record-keeping related investigations by those agencies relating to business communications on messaging platforms that had not been approved by the Firm. The Company was one of the entities involved in these investigations, and has recognized a provision of $63 million in anticipation of concluding the settlement with the SEC. On September 27, 2022, the Firm’s settlements with the SEC and the CFTC became effective.

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Civil Litigation

On August 18, 2009, Relators Roger Hayes and C. Talbot Heppenstall, Jr., filed a qui tam action in New Jersey state court styled State of New Jersey ex. rel. Hayes v. Bank of America Corp., et al. The complaint, filed under seal pursuant to the New Jersey False Claims Act, alleged that the Company and several other underwriters of municipal bonds had defrauded New Jersey issuers by misrepresenting that they would achieve the best price or lowest cost of capital in connection with certain municipal bond issuances. On March 17, 2016, the court entered an order unsealing the complaint. On November 17, 2017, Relators filed an amended complaint to allege the Company mispriced certain bonds issued in twenty-three bond offerings between 2008 and 2017, having a total par amount of $6,946 million. The complaint seeks, among other relief, treble damages. On February 22, 2018, the Company moved to dismiss the amended complaint, and on July 17, 2018, the court denied the Company’s motion. On October 13, 2021, following a series of voluntary and involuntary dismissals, Relators limited their claims to certain bonds issued in five offerings the Company underwrote between 2008 and 2011, having a total par amount of $3,856 million.

On May 17, 2013, plaintiff in IKB International S.A. in Liquidation, et al. v. Morgan Stanley, et al. filed a complaint against MS&Co. and certain affiliates in the Supreme Court of the State of New York, New York County (“Supreme Court of NY”). The complaint alleges that defendants made material misrepresentations and omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by MS&Co. to plaintiff was approximately $133 million. The complaint alleges causes of action against MS&Co. for common law fraud, fraudulent concealment, aiding and abetting fraud, and negligent misrepresentation, and seeks, among other things, compensatory and punitive damages. On October 29, 2014, the court granted in part and denied in part MS&Co.’s motion to dismiss. All claims regarding four certificates were dismissed. After these dismissals, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $116 million. On August 11, 2016, the Appellate Division, First Department (“First Department”) affirmed the trial court’s decision denying in part MS&Co.’s motion to dismiss the complaint. On July 15, 2022, MS&Co. filed a motion for summary judgment. On March 1, 2023, the court granted in part and denied in part MS&Co.’s motion for summary judgment, narrowing the alleged misrepresentations at issue in the case. In March 2023, both parties appealed the decision. At December 25, 2019, the current unpaid balance of the mortgage pass-through certificates at issue in this action was approximately $22 million, and the certificates had incurred actual losses of $58 million. Based on currently available information, MS&Co. believes it could incur a loss in this action up to the difference between the $22 million unpaid balance of these certificates (plus any losses incurred) and their fair market value at the time of a judgment against MS&Co., or upon sale, plus pre- and post-judgment interest, fees and costs. MS&Co. may be entitled to be indemnified for some of these losses and to an offset for interest received by the plaintiff prior to a judgment.

Beginning in February of 2016, the Firm was named as a defendant in multiple purported antitrust actions now consolidated into a single proceeding in the United States District Court for the SDNY styled In Re: Interest Rate Swaps Antitrust Litigation. Plaintiffs allege, inter alia, that the Firm, together with a number of other financial institution defendants violated U.S. and New York state antitrust laws from 2008 through December of 2016 in connection with their alleged efforts to prevent the development of electronic exchange-based platforms for interest rate swaps trading. Complaints were filed both on behalf of a purported class of investors who purchased interest rate swaps from defendants, as well as on behalf of two swap execution facilities that

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allegedly were thwarted by the defendants in their efforts to develop such platforms. The consolidated complaints seek, among other relief, certification of the investor class of plaintiffs and treble damages. On July 28, 2017, the court granted in part and denied in part the defendants’ motion to dismiss the complaints. A decision on plaintiffs’ motion for class certification is pending.

On August 13, 2021, the plaintiff in Camelot Event Driven Fund, a Series of Frank Funds Trust v. Morgan Stanley & Co. LLC, et al. filed in the Supreme Court of NY a purported class action complaint alleging violations of the federal securities laws against ViacomCBS (“Viacom”), certain of its officers and directors, and the underwriters, including the Company, of two March 2021 Viacom offerings: a $1,700 Viacom Class B Common Stock offering and a $1,000 offering of 5.75% Series A Mandatory Convertible Preferred Stock (collectively, the “Offerings”). The complaint alleges, inter alia, that the Viacom offering documents for both issuances contained material omissions because they did not disclose that certain of the underwriters, including the Company, had prime brokerage relationships and served as counterparties to certain derivative transactions with Archegos Capital Management LP, (“Archegos”), a fund with significant exposure to Viacom securities across multiple prime brokers. The complaint, which seeks, among other things, unspecified compensatory damages, alleges that the offering documents did not adequately disclose the risks associated with Archegos’s concentrated Viacom positions at the various prime brokers, including that the unwind of those positions could have a deleterious impact on the stock price of Viacom. On November 5, 2021, the complaint was amended to add allegations that defendants failed to disclose that certain underwriters, including the Company, had intended to unwind Archegos’s Viacom positions while simultaneously distributing the Offerings. On February 6, 2023, the court issued a decision denying the motions to dismiss as to the Company and the other underwriters, but granted the motion to dismiss as to Viacom and the Viacom individual defendants. On February 15, 2023, the underwriters, including the Firm, filed their Notices of Appeal of the denial of their motions to dismiss. On March 10, 2023, the plaintiff filed a Notice of Appeal of the dismissal of Viacom and the individual Viacom defendants.

Settled Civil Litigation

On July 15, 2010, China Development Industrial Bank (“CDIB”) filed a complaint against MS&Co., styled China Development Industrial Bank v. Morgan Stanley & Co. Incorporated et al., in the Supreme Court of NY. The complaint related to a $275 million credit default swap (“CDS”) referencing the super senior portion of the STACK 2006-1 CDO. The complaint asserted claims for common law fraud, fraudulent inducement and fraudulent concealment and alleges that MS&Co. misrepresented the risks of the STACK 2006-1 CDO to CDIB, and that MS&Co knew that the assets backing the CDO were of poor quality when it entered into the CDS with CDIB. On March 22, 2021, the parties entered into a settlement agreement. On April 16, 2021, the court entered a stipulation of voluntary discontinuance, with prejudice.

On October 15, 2010, the Federal Home Loan Bank of Chicago filed a complaint against MS&Co. and other defendants in the Circuit Court of the State of Illinois, styled Federal Home Loan Bank of Chicago v. Bank of America Funding Corporation et al. A corrected amended complaint was filed on April 8, 2011, which alleges that defendants made untrue statements and material omissions in the sale to plaintiff of a number of mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans and asserts claims under Illinois law. The total amount of certificates allegedly sold to plaintiff by MS&Co. at issue in the action was approximately $203 million. The complaint seeks, among other things, to rescind the

32

plaintiff’s purchase of such certificates. On November 4, 2021, the Firm entered into an agreement to settle the litigation.

On April 20, 2011, the Federal Home Loan Bank of Boston filed a complaint against MS&Co. and other defendants in the Superior Court of the Commonwealth of Massachusetts styled Federal Home Loan Bank of Boston v. Ally Financial, Inc. F/K/A GMAC LLC et al. An amended complaint was filed on June 29, 2012 and alleged that defendants made untrue statements and material omissions in the sale to plaintiff of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $385 million. The amended complaint raised claims under the Massachusetts Uniform Securities Act, the Massachusetts Consumer Protection Act and common law and sought, among other things, to rescind the plaintiff’s purchase of such certificates. On November 25, 2013, July 16, 2014, and May 19, 2015, respectively, the plaintiff voluntarily dismissed its claims against MS&Co. with respect to three of the securitizations at issue. After these voluntary dismissals, the remaining amount of certificates allegedly issued by MS&Co. or sold to plaintiff by MS&Co. was approximately $332 million. On July 13, 2018, the parties reached an agreement in principle to settle the litigation.

On May 3, 2013, plaintiffs in Deutsche Zentral-Genossenschaftsbank AG et al. v. Morgan Stanley et al. filed a complaint against MS&Co., certain affiliates, and other defendants in the Supreme Court of NY. The complaint alleged that defendants made material misrepresentations and omissions in the sale to plaintiffs of certain mortgage pass-through certificates backed by securitization trusts containing residential mortgage loans. The total amount of certificates allegedly sponsored, underwritten and/or sold by MS&Co. to plaintiff was approximately $634 million. The complaint alleged causes of action against MS&Co. for common law fraud, fraudulent concealment, aiding and abetting fraud, negligent misrepresentation, and rescission and sought, among other things, compensatory and punitive damages. On June 26, 2018, the parties entered into an agreement to settle the litigation.

On April 1, 2016, the California Attorney General’s Office filed an action against MS&Co. in California state court styled California v. Morgan Stanley, et al., on behalf of California investors, including the California Public Employees’ Retirement System and the California Teachers’ Retirement System. The complaint alleged that MS&Co. made misrepresentations and omissions regarding residential mortgage-backed securities and notes issued by the Cheyne SIV, and asserted violations of the California False Claims Act and other state laws and sought treble damages, civil penalties, disgorgement, and injunctive relief. On April 24, 2019, the parties reached an agreement to settle the litigation.

In August of 2017, MS&Co. was named as a defendant in a purported antitrust class action in the United States District Court for the Southern District of New York (“SDNY”) styled Iowa Public Employees’ Retirement System et al. v. Bank of America Corporation et al. Plaintiffs allege, inter alia, that MS&Co., together with a number of other financial institution defendants, violated U.S. antitrust laws and New York state law in connection with their alleged efforts to prevent the development of electronic exchange-based platforms for securities lending. The class action complaint was filed on behalf of a purported class of borrowers and lenders who entered into stock loan transactions with the defendants. The class action complaint seeks, among other relief, certification of the class of plaintiffs and treble damages. On September 27, 2018, the court denied the defendants’ motion to dismiss the class action complaint. Plaintiffs’ motion for class certification was referred by the District Court to a magistrate judge who, on June 30, 2022, issued a report and recommendation that the District Court certify a class. The motion for class

33

certification and the parties’ objections to the report and recommendation are pending before the District Court. On May 20, 2023, the Firm reached an agreement in principle to settle the litigation.

Beginning on March 25, 2019, MS&Co. was named as a defendant in a series of putative class action complaints filed in the United States District Court for the SDNY, the first of which is styled Alaska Electrical Pension Fund v. BofA Secs., Inc., et al. Each complaint alleged a conspiracy to fix prices and restrain competition in the market for unsecured bonds issued by the following Government-Sponsored Enterprises: the Federal National Mortgage Association; the Federal Home Loan Mortgage Corporation; the Federal Farm Credit Banks Funding Corporation; and the Federal Home Loan Banks. The purported class period for each suit is from January 1, 2012 to June 1, 2018. Each complaint raised a claim under Section 1 of the Sherman Act and sought, among other things, injunctive relief and treble compensatory damages. On May 23, 2019, plaintiffs filed a consolidated amended class action complaint styled In re GSE Bonds Antitrust Litigation, with a purported class period from January 1, 2009 to January 1, 2016. On June 13, 2019, the defendants filed a joint motion to dismiss the consolidated amended complaint. On August 29, 2019, the court denied MS&Co.’s motion to dismiss. On December 15, 2019, MS&Co. and certain other defendants entered into a stipulation of settlement to resolve the action as against each of them in its entirety. On June 16, 2020, the court granted final approval of the settlement.

Additional lawsuits containing claims similar to those described above may be filed in the future. In the course of its business, MS&Co., as a major futures commission merchant, is party to various civil actions, claims and routine regulatory investigations and proceedings that the General Partner believes do not have a material effect on the business of MS&Co. MS&Co. may establish reserves from time to time in connections with such actions.

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Item 1A. Risk Factors.

There have been no material changes to the risk factors set forth under Part I, Item 1A. “Risk Factors.” in the Partnership’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 and under Part II, Item 1A. “Risk Factors.” in the Partnership’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023, other than as disclosed in Note 4, “Financial Instrument Risks,” of the financial statements.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

For the three months ended June 30, 2023, there were no additional subscriptions of Class A and Class Z Units. Units are issued in reliance upon applicable exemptions from registration under Section 4(a)(2) of the Securities Act and Section 506 of Regulation D promulgated thereunder. Units are purchased by accredited investors as defined in Regulation D. In determining the applicability of the exemption, the General Partner relies on the fact that the Units are purchased by accredited investors in a private offering.

Proceeds of net offering are used for the trading of Futures Interests.

The following chart sets forth the purchases of Units by the Partnership.

Period	Class A (a) Total Number of Units Purchased*		Class A (b) Average Price Paid per Unit**		(c) Total Number of Units Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Units that May Yet Be Purchased Under the Plans or Programs
April 1, 2023 - April 30, 2023		31,366.385	$	28.51	N/A	N/A
May 1, 2023 - May 31, 2023		14,002.467	$	29.13	N/A	N/A
June 1, 2023 - June 30, 2023		42,391.360	$	29.73	N/A	N/A
		87,760.212	$	29.20

*    Generally, limited partners are permitted to redeem their Units as of the end of each month on three business days’ notice to the General Partner. Under certain circumstances, the General Partner can compel redemption, although to date the General Partner has not exercised this right. Purchases of Units by the Partnership reflected in the chart above were made in the ordinary course of the Partnership’s business in connection with effecting redemptions for limited partners.

** Redemptions of Units are effected as of the last day of each month at the net asset value per Unit as of that day.

Item 3. Defaults Upon Senior Securities. None.

Item 4. Mine Safety Disclosures. Not applicable.

Item 5. Other Information. None.

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Item 6. Exhibits.

31.1 — Rule 13a-14(a)/15d-14(a) Certification (Certification of President and Director) (filed herewith).

31.2 — Rule 13a-14(a)/15d-14(a) Certification (Certification of Chief Financial Officer) (filed herewith).

32.1 — Section 1350 Certification (Certification of President and Director) (filed herewith).

32.2 — Section 1350 Certification (Certification of Chief Financial Officer) (filed herewith).

101.INS Inline XBRL Instance Document.

101.SCH Inline XBRL Taxonomy Extension Schema Document.

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF Inline XBRL Taxonomy Extension Definition Document.

104. Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

CERES CLASSIC L.P.

	By:	Ceres Managed Futures LLC
		(General Partner)
	By:	/s/ Patrick T. Egan
		Patrick T. Egan
		President and Director
	Date: August 10, 2023
	By:	/s/ Brooke Lambert
		Brooke Lambert
		Chief Financial Officer
		(Principal Accounting Officer)
Date: August 10, 2023

The General Partner which signed the above is the only party authorized to act for the registrant. The registrant has no principal executive officer, principal financial officer, controller, or principal accounting officer and has no Board of Directors.

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