This summary highlights futures positions and changes made by speculators such as hedge funds and CTA’s across 24 commodities up until last Tuesday, October 20.
A week where the lack of progress on a U.S. stimulus package and a continued rise in global Covid-19 cases helped sent the S&P 500 lower by 2%. The Dollar Index meanwhile dropped 0.5% while long-end bond yields ticked higher to reach a four-month high. Commodities maintained their recent strong momentum with the Bloomberg Commodity Index, led by industrial metals and grains, rising by 1.9% to an eight-month high.
All sectors with the exception of livestock rallied higher in the week to October 20. Grains (+4.1%) and industrial metals (+3%) led from the front with the biggest winners being WTI crude oil, HG copper, silver, corn, wheat and sugar while losses were concentrated in coffee and both cattle contracts.
In response to these gains, hedge funds increased bullish bets across the 24 futures tracked in this report by 8% to 2.3 million lots, the highest since February 2017. New multi-month highs were seen in natural gas, HG copper, soybean meal, corn, Kansas wheat, sugar and cotton. Net short positions were held in just three contracts: Ny Harbor ULSD, platinum and feeder cattle.