Article / 16 February 2015 at 10:05 GMT

COT: Third weekly cut in bullish commodity bets

Head of Commodity Strategy / Saxo Bank
Denmark
  • Hedge funds cut bullish commodity bets
  • Gold, copper, soybeans lead net-sold list
  • Cocoa, cotton see rise in net-longs

By Ole Hansen

Hedge funds cut their bullish bets on commodities by 9% last week according to data from the weekly Commitment of Traders report. Sixteen out of 24 commodities were net-sold, with gold, copper and soybeans taking the brunt while strong buying of cotton supported the soft sector. 

Hedge Funds Sector positioning
 
The combined net-long position against 24 major commodities tracked here fell to 601,000 lots of futures and options during the week of February 10. Funds have been net sellers for the past three weeks and during this time the net-long has fallen by almost one-third (primarily driven by a sharp drop in grain and oil-seed exposure).

Speculative position in Commodities






















Gold had its net-long cut by 17.3% to 134,000 lots during the week (which saw the price drop below technical support at $1250/oz). This triggered some consolidation following the strong gains and rapid build in net-longs following the Swiss Central Bank's move on January 15. 

Speculators in WTI crude oil maintained an unchanged net-exposure with net-selling on Globex being off-set by similar buying on ICE. 

Full report attached.

— Edited by Michael McKenna

Ole Hansen is head of commodity strategy at Saxo Bank – the home of social trading.
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Commitment of Traders: Commodities

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