23 May 2016 at 16:12 GMT
- Net-buying in all sectors except metals because of aggressive copper selling
- Sugar longs hit a new record high
- Crude oil net-long jumped by 14% on fresh buying and shorts being reduced
- Soybean sector continuing to see strong demand
- Gold net-long only seeing a small reduction despite headwinds from stronger USD
Most commodities shone last week but copper got hammered. Pic: iStock
By Ole Hansen
Hedge funds increased commodity bets by 3% to 1.15 million lots, a two-year high, during the week ending May 17. Net buying was seen across all sectors apart from metals due to a second week of aggressive copper selling. Sugar longs hit a new record while crude oil longs jumped as the short base continued to dwindle on both WTI and Brent.
Sugar longs hit a new record while crude oil longs jumped as the short base continued to dwindle on both WTI and Brent.
The combined net-long on WTI and Brent crude jumped 75 million barrels during the week where traders were chasing the $50 level.
Brent crude in particular saw continued reduction of short positions. This resulted in the long/short ratio reaching a new record above 16, meaning for every short position there are currently more than 16 longs.
– Edited by Clare MacCarthy