This summary highlights futures positions and changes made by hedge funds across commodities and forex during the week to August 3. A week that saw a strong recovery in risk appetite following the dovish FOMC 0.75% rate hike on July 27 when Fed Chair Powell signaled the Fed could slow the pace of rate hikes. A comment he may regret after Friday’s strong US job report forced a reprising of future rate hikes with another 0.75% back on the table next month. The reporting week also saw bond yields trade softer while the dollar index lost close to one percent.
CommoditiesSpeculators in commodities reacted very mixed to the mentioned developments with strong gains in metals, both precious and industrials being more than offset by losses in energy and agriculture commodities, most notably natural gas, gas oil, wheat, and sugar.
Overall, the Bloomberg Commodity index traded softer by 0.6% with speculators showing no firm conviction after increasing bullish bets across the 24 major commodity futures tracked in this by 1% to 853k, a small recovery from the two-year low recorded the previous week. Biggest reductions seen in crude oil, natural gas and sugar with net buying concentrated in metals, soybeans, and corn.