COT Report: Speculators slash commodity longs to 11-month low, gold stays dominant – Saxo Financial institution

Commodities

Within the week to August 5, a number of main developments drove positioning modifications throughout key commodities. Trump’s abrupt reversal on copper tariffs triggered a 22% droop in New York costs, prompting funds to halve their HG copper web lengthy. In power, OPEC+’s continued manufacturing will increase—probably right into a softening demand interval—pressured crude oil, whereas fading tightness within the diesel market led to lengthy liquidation in London and New York from current three-year highs.

Grains remained below stress as beneficial U.S., European, and Black Sea climate maintained sturdy crop prospects, reinforcing elevated speculative brief positions throughout wheat, corn, and soybeans. Notably, soybean futures jumped 2.5% in early Monday commerce after Trump urged China to quadruple U.S. soy purchases as a part of efforts to chop its commerce deficit with China. As of late July, US authorities knowledge confirmed China, the world’s high purchaser of soybeans, had but to ebook any cargoes for the upcoming season that begins in September as tensions between the 2 sides linger.

Total, managed cash accounts engaged in broad-based promoting, with many of the 27 main commodity futures tracked seeing web reductions. The mixed web lengthy fell to an 11-month low of 540,000 contracts, valued at USD 107 billion. Greater than half of this nominal worth got here from gold’s 161,811-contract web lengthy—which, in distinction to the broader pattern, rose 13% final week as a weaker-than-expected U.S. jobs report and potential dovish shift from the FOMC boosted September rate-cut expectations.

Foreign exchange

Regardless of rising indicators of the current greenback restoration had run out of steam, speculators prolonged their current shopping for spree to 6 resulting in a substantial quantity of additional greenback short-covering. Total, the gross USD brief versus eight IMM foreign exchange futures slumped by 38% to USD 7.1 billion, the bottom perception in a weaker greenback since April, with promoting seen throughout all eight besides the Mexican peso, and led by JPY, EUR and never least GBP after the online brief jumped to close a three-year excessive. One other excessive emerged in AUD the place the online brief reached an 18-month excessive.