COT: Brent, copper, sugar buck selling trend
Head of Commodity Strategy
Summary: Leveraged funds continued to cut bullish bets across 25 major commodity futures in the week to September 18, but Brent crude shrugged off the trend on the back of supply disruption fears while copper and sugar also saw short-covering gains.
To download your copy of the Commitment of Traders: Commodities report for the week ending September 18, click here.
Leveraged funds cut bullish bets on 25 major commodity futures to 757,000 lots, a 2½ year low, in the week to September 18. The main driver last week was the grain sector which saw across-the-board selling ahead of what is expected to be a bumper US harvest.
The additional rally above $80/b in Brent crude oil this Monday followed comments from two of the world’s biggest oil traders about the short-term risk of higher prices. Executives from Trafigura and Mercuria at the annual Asia Pasific Petroleum Conference (APPEC) in Singapore both saw the risk of oil rising to $100/b by 2019. Falling supplies from Iran due to US sanctions may drive the market into a significant supply deficit during the coming quarters. You can follow news from the conference by following #PlattsAPPEC on Twitter.
Natural gas was sold before rallying on the news that China would introduce tariffs on US LNG at a lower-than-expected rate.
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