Article / 30 May 2016 at 6:47 GMT

COT: Metals lead pack in broad-based commodity selling

Head of Commodity Strategy / Saxo Bank
  • Net-long across 22 commodities dropped by 13% - five metals were hardest hit
  • Gold net-long was cut by 26% to a seven-week low
  • Copper exposed to short-covering - and that was what happened this week
 Major dent: The big metals, including gold and copper, have been sold short. Photo: iStock

By Ole Hansen

The strong demand for dollars last week was reflected in commodities where the net-long across 22 commodities dropped by 13% to 1.1 million lots. The metal sector was the hardest hit with all five tracked here seeing reductions.

Speculative positioning in Commodities

Source: Bloomberg/Saxo Bank

Table overview
Speculative positioning in Commodities
Source: CFTC/Bloomberg/Saxo Bank

Gold net-long was cut by 26% to a seven-week low. At the beginning of May the net-long jumped 27% in a single week while the price was trading above $1250. The continued weakness had left many nursing losses and exposure has been cut.

Speculative positioning in COMEX Gold futures
Source: Bloomberg/Saxo Bank
Oil traders took profit on long positions while WTI crude continued its ascent towards $50/b. The reduction of short positions at the same time left the net long down by just 2%.  

Speculative positioning in WTI Crude oil
Source: Bloomberg/Saxo Bank

From an elevated long to a near record short in just three weeks had left copper exposed to short-covering and that was what we got this past week after the price failed to break support in the $2 to $2.04 area.

Speculative positioning in HG Copper
Source: Bloomberg/Saxo Bank

The phenomenal rally in soymeal during the past six weeks on supply concerns in Argentina continued to attract buyers with the net-long rising to a two-year high

-- Edited by Adam Courtenay

Ole Hansen is head of commodity strategy at Saxo Bank.

Download document

Commitments of Traders: Commodities


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer
- 沪ICP备13028953号-1

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail