The below summary highlights futures positions and changes made by hedge funds across commodities, forex, bonds and stock index futures up until last Tuesday, December 1, a week that was shortened by the U.S. Thanksgiving holiday. The risk-on mood nevertheless powered global stocks higher with the S&P 500 and Nasdaq Composite both closing at record highs. Driven by the forceful combination of a vaccine-led boost to global growth next year and the prospect for additional U.S. stimulus to mitigate an ongoing surge in Covid-19 cases. Ten-year bond yields rose 5 basis on raised inflation expectations while the dollar dropped to a 2-1/2-year low.
The Bloomberg Commodity Index traded lower with profit taking in energy, grains and softs being partly off-set by a broad metals rally. The net result of these developments was a net increase in the speculative long across 24 major futures contracts by 1% to 2.3 million lots, the highest since February 2017.
For a second week buying of energy and metals, both precious and industrials, more than offset continued profit taking across the agriculture sector. The top three buys were all found in the energy sector led by WTI crude oil and natural gas while corn, wheat and sugar saw the biggest reductions.