Energy: Despite a continued rally in crude oil during the reporting week, speculators opted to make a small reduction ahead of last week's OPEC+ meeting. Selling was most pronounced in WTI with the bulk of the overall 3% reduction to 408k lots being long liquidation with no signs of short sellers emerging.
Latest: Crude oil trades close to unchanged with market participants trying to decipher what happens next within the OPEC+ group following a rare diplomatic spat between the UAE and Saudi Arabia. The UAE is looking for better terms and have so far refused the join a deal that would increase production by 400k bpd per month from August to December. At stake if the unity weakens, is the group's ability to continue to control prices, and with this in mind the market is still refusing to believe that a deal will not be struck eventually. The OPEC+ meeting look set to resume Monday afternoon Vienna time. Twitter users can follow developments on Twitter by using #OOTT and #OPEC.
Metals: Speculators cut bullish gold bets by 5% to an eight-week low in the week to June 29, mostly due to fresh short selling. It highlights the prospect for a potential short-covering rally on a break above $1814. Silver and platinum both got bought with buyers also returning to copper for the first time in two months to lift the net long by 43% to 27.6k lots.
Latest: Gold trades near a two-week high, and resistance at $1795 as concerns over an earlier-than expected rate hike by the Federal Reserve eased following a mixed bag of U.S. job data on Friday. However, with U.S. ten-year real yields reaching low levels last seen prior to the mid-June FOMC meeting, the recovery so far looks anything but impressive. Focus this week on FOMC minutes and the dollar which currently provides most of the directional input. Speculators meanwhile cut bullish gold bets by 5% to an eight-week low in the week to June 29, mostly due to fresh short selling. It highlights the prospect for a renewed short-covering rally on a break above $1814.
Agriculture: Ahead of key acreage and stock reports from the USDA last week, the grain market saw a small net reduction in bullish bets primarily driven by a reduction in all three soybean contracts on rising short selling. Speculators meanwhile, and rightfully so, maintained their belief in higher corn prices by increasing the net long by 1% to 245k lots. Wheat was mixed with selling of CBOT returning the net position to neutral while the net long in Kansas wheat received a 53% boost to 22.7k lots on emerging drought worries.