Last week Hedge Funds and large investors reduced bullish bets for the third week in a row. Long positions in futures (excl. options) were reduced by 1.3% to 1,384,000 lots.
Worries that the current economic downturn is more than just a soft patch seems to have changed investors' attitudes towards commodities, at least for now. A similar downshift was seen last year before the autumn rally began late August.
Losing sectors: Grains 4.7%, meats 22% and metals 1.9%
Winning sectors: energy 4% and softs 12%
The energy sector saw net gains across WTI, Gasoline and especially Heating Oil as refiners focused on making gasoline ahead of peak driving season at a time where export of diesel has been picking up resulting in a heating oil inventory decline during the second quarter.
The grain sector saw a relative big decline during a week where the price of corn and especially wheat fell heavily as improved weather has raised the prospects of a better than expected production. Total longs are still at elevated levels as funds still see a good upside potential, especially for corn and soybeans.
Long positions in the soft sector rose by 12% on the back of a big jump in sugar longs as the month long rally continued.
Investors scaled back positions in gold as the market is caught between profit takers and safe haven buyers.
Worries that the current economic downturn is more than just a soft patch seems to have changed investors' attitudes towards commodities, at least for now. A similar downshift was seen last year before the autumn rally began late August.
Losing sectors: Grains 4.7%, meats 22% and metals 1.9%
Winning sectors: energy 4% and softs 12%
The energy sector saw net gains across WTI, Gasoline and especially Heating Oil as refiners focused on making gasoline ahead of peak driving season at a time where export of diesel has been picking up resulting in a heating oil inventory decline during the second quarter.
The grain sector saw a relative big decline during a week where the price of corn and especially wheat fell heavily as improved weather has raised the prospects of a better than expected production. Total longs are still at elevated levels as funds still see a good upside potential, especially for corn and soybeans.
Long positions in the soft sector rose by 12% on the back of a big jump in sugar longs as the month long rally continued.
Investors scaled back positions in gold as the market is caught between profit takers and safe haven buyers.
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