Agriculture: The net selling that began in late April across the grains sector, and some two weeks before prices peaked, accelerated last week. From holding a net long position of more than 800,000 lots across the six grain and soybean futures tracked in this, the net dropped to a just 475k last week, led by corn and soybeans. Softs saw the sugar length cut by 39% to just 71k lots from a 238k peak on April 12. Cotton a market long supported by tight supply and strong demand, slumped 18% on prolonged worries about Chinese demand and not least due to a major long position being caught offside, resulting in the net long being reduced by 24% to one-year low at 47k lots.
Speculators cut bullish dollar bets by 12% in the week to June 28, and despite sealing its best quarter since 2016 they remain hesitant about extending bullish dollar bets. Against nine currency futures and the dollar index, the $2.4 billion reduction to $17.8 billion, a three-week low, were driven by broad buying of all the major currency except CHF and AUD, most notably short-covering in GBP (+10k lots to -53k lots), EUR (+5k to -11k) and JPY (+6k to -53k).