This summary highlights futures positions and changes made by hedge funds across commodities and forex during the week to June 21. A week that followed the post-FOMC rate hike and weaker than expected economic data helped steer the market focus towards the looming risk of an economic slowdown, and in a worst-case recession. The result of these worries being a sharp reversal in US ten-year treasury yields and a weaker dollar both after hitting multi-year highs.
Worries about growth and with that demand for commodities helped trigger long liquidation in energy and grains together with additional short selling in copper. Precious metals meanwhile attracted buyers in response to the weakness mentioned in yields and the dollar.
The commodity sector extended its decline during the reporting week with Bloomberg Commodity Spot index declining 2.1% with losses led by energy and the grain sectors.
Overall, the total net long across the 24 commodity futures tracked in this slipped 5% to a 22-month low at 1.5 million lots, with the biggest reductions seen in WTI crude oil, natural gas, grains and sugar.
Note, the table below does not include delayed data from the ICE Europe Exchange on Brent and Gas oil.