August 25, 2018
Funds liked some, but not all commodities this week as different groups of money managers had differently outlooks on the sector.
Here’s what funds were up to through Tuesday, Aug. 21, when the CFTC collected data for its latest Commitment of Traders.
Big speculators bought a net 45,496 contracts in crops and livestock last week, adding positions in hogs and cattle with mixed trade in crops. But investors using index funds to gain exposure to commodities cut 23,567 contracts off their net long position, the third straight week of decline as a strong dollar curb enthusiasm for the sector.
Big speculators covered some of their short position in corn last week, buying a net 12,047 contracts. Index traders were selling on the week.
Big speculators covered 19,994 contracts of their net short position in soybeans, pulling back from their most bearish reading since January.
Big speculators were net buyers on the week in soybean oil, but barely. These hedge funds covered just 8 contracts of their net short position.
Big speculators sold soybean meal, taking 1,799 contracts off their bullish position helping weaken crush margins for processors. Index traders were selling across the complex in the latest week.
Big speculators were light sellers in soft red winter wheat, taking 1,611 contracts off their small net long position in the latest week.
Big speculators added 1,778 lots to their bullish bet in hard red winter wheat, while index traders cut 121 contracts off their large net long position, which reached its second highest level ever the previous week.
Large spring wheat traders bought for the fourth straight week, extending their net long position in Minneapolis by 1,159 contracts.
Out of gas
Money managers continued to dump holdings in crude oil, selling another $920 million of their holdings, selling for the eighth straight week after prices peaked this summer.
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