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

Create your own charts with SaxoTraderGO click here to learn more

— Edited by Michael McKenna

Ole Hansen is head of commodity strategy at Saxo Bank

Download document

Commitments of Traders: Commodities

Market Predator Market Predator
Crude oil is real roller-coaster.


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