Article / 05 September 2016 at 8:32 GMT

COT: Oil, gold, copper sales lead broad-based reduction

Head of Commodity Strategy / Saxo Bank
  • Commodity sales pick up; WTI, gold, wheat, and copper lead the charge
  • Fifteen of 22 futures tracked by COT report show selloffs last week
  • WTI net-long sees 10% reduction as prices fall following late-August rally

Crude oil markets remain in flux ahead of the upcoming 
producers' meeting in Algiers. Photo: iStock

By Ole Hansen

Hedge funds reduced bullish bets across some of the major US-listed commodity futures during the week ending August 30. Some of the broad-based weakness was likely to have been triggered by the stronger dollar after the central bank summit at Jackson Hole. 

Fifteen of the 22 commodity futures tracked in this report were sold with heavyweights like WTI crude, gold, copper and wheat leading the way.


The 10% reduction in WTI crude oil longs were driven by bulls making a quick getaway following the record buying spree seen over the previous two weeks.

Speculative positioning in WTI Crude oil
Gold net-longs were also reduced by 10% as the battle for $1,300/oz began to heat up as the dollar strengthened.

Speculative positioning in COMEX Gold futures
Weakening copper fundamentals as highlighted in recent updates helped trigger a surge in short-selling. Funds who had only turned net-short two weeks ago cut longs while increasing gross-short positions. This left the net-shot up by 438% on the week. 

Speculative positioning in COMEX Copper
Strong demand for natural gas and fading risk of hitting storage capacity triggered a 40% increase to a 25-month high across the four different Henry Hub deliverable gas contracts. 

Speculative positioning in Natural Gas
The sugar net-long reached another record with bulls still accumulating in the belief that supply shortages will drive the price higher still. We remain concerned that the accumulation in recent weeks has failed to trigger a break higher. For now the market has settled into a wide range between 18.5 and 21 US cents/lb.

Speculative positioning in Sugar

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— Edited by Michael McKenna

Ole Hansen is head of commodity strategy at Saxo Bank

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Commitments of Traders: Commodities

05 September
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Crude oil is real roller-coaster.


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