Metals: Gold’s sixth rejection above $1830 since July combined with a recovering dollar and rising bond yields, helped drive a 16% reduction in the speculative length to 83.5k lots. Silver, which managed to break higher, was bought for a third week with funds increasing the net long by 44% to 17.9k lots. Platinum remains one of the few contracts, apart from soybean meal, where funds hold a net short position. During the week it was increased by 31% to 7.1k lots as the metal was dragged lower by palladium which dropped to a one-year low.
HG copper weakness during the reporting week failed to attract any fresh selling with the price stuck in a range before Friday’s spike to a one-month high above $4.4/lb.
Agriculture: The grains market saw heavy selling of all three crops on a combination of pre-WASDE adjustments and Hurricane Ida disrupting exports, just as the harvest was about the begin. Overall the sector long was cut by 20% to 364k lots with the soybean long slumping to a 13 month low at 57.5k lots while the biggest change in terms of lots was corn which saw a43.6k lots reduction.
The softs sector was mixed with selling of sugar and coffee, while cocoa and cotton were bought. Buying of the latter extended into a 14th week with the net long reaching the highest level since May 2018.
Latest: Grains witnessed a very volatile Friday following the release of the monthly WASDE report from the US Department of Agriculture. The headline numbers, showing a bigger-than-expected rise in corn and soybean stockpiles, initially sent prices lower before recovering strongly in response to the agency boosting its forecast for exports,and the fact most of the findings had already been accounted for by the recent selloffs. Corn (CORNDEC21) led the turnaround, jumping 5.3% before settling higher by just 1.5%.