Hedge funds and large investors cut their total long futures position
by 2.5 percent to 1,27 million lots last week. As the data was compiled
last Tuesday it will not have taken into account the impact of the
turmoil that hit the markets later that week.
It did however already then show the trend that continued over the
week as energy exposure was reduced and precious metals exposure was
increased.
WTI Crude futures positions were cut by a combined 10 percent on the
ICE and NYMEX exchanges, the biggest weekly reduction in more than six
months. The carnage that followed later in the week will undoubtedly
have reduced exposure even further on growing concern that lower
economic activity will cut energy demand. Heating oil and gasoline
long positions were reduced by 13 and 6 percent respectively
Investors increased their gold futures positions by 5 percent to the
highest level since October 2010. Silver, platinum and palladium also
saw net inflows as the scramble to park cash in something safe continued
and probably would have escalated further in the days that followed
Tuesday.
The other sectors saw only small changes with the grains sector
having so far been immune to the turmoil as weather related issues have
remained the main focus.
Background information: The Commitments of Traders is a report
issued by the Commodity Futures Trading Commission every Friday with
data from the previous Tuesday. It comprises the holdings of
participants in various U.S. futures markets split into "commercial" and
"non commercial" holdings. The non commercial or speculative holding
are typically institutional investors such as hedge funds and CTAs.
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