Investments in commodity markets declined further in June affected by the ongoing unfavourable macroeconomic concerns, fears over the Chinese economic recovery and slow progress in finding a solution to Euro-zone sovereign debt problems. Total open interest volume (OIV) in major commodity markets in the US declined by 3% m-o-m to 8,176,422 contracts in June, compared to a 2.9% loss in the earlier month.
Most of the markets felt the negative impact of persisting macroeconomic concerns.Total net long speculative positions fell by 10% m-o-m to 551,966 contracts in June, compared to a 22.5% decline during the previous month. Longs fell by 5.7% while shorts dropped by 3.1% m-o-m. Except for a gain in gold (1.2%), all markets at the US CFTC recorded an outflow in net money positions.
Agricultural OIV dropped by 2% m-o-m to 4,361,710 contracts in June, compared to a drop of 3.8% last May. Money managers’ net long positions in agricultural markets decreased by 11.5% m-o-m to 359,084 contracts in June, compared to a 25.7% drop in May. There was a combined decline in longs and shorts of 6% and 2% on a monthly basis, respectively. The decline in strategic investments for the whole sector was softer because some grains, notably corn, saw an improvement in prices.
The HH natural gas OIV fell slightly by 3.8% m-o-m to 1,178,401 contracts in June, compared to a decline 3.5% during the previous month. Money managers’ net positions increased by 9% m-o-m to a minus 65,562 contracts compared to a 29.7% gain in May on a rise of 5% short positions and 3% in longs.
Copper OIV rebounded by 1.9% m-o-m to 149,906 contracts in June compared to a 5.6% loss in May. Speculative net long positions plummeted by 348% m-o-m to minus 13,045 contracts in June, compared to a drop of 19.1% in May. The huge retreat in strategic investments was due to a 47.7% m-o-m rise in short positions.
Gold OIV declined by 1.1% m-o-m to 417,074 contracts in June, compared to a 5% gain in May. Tactical investments in gold were up 1% m-o-m to 86,778 contracts in June, compared to a 20% decline during the previous month. Short positions rose by 11.7% m-o-m while longs rose by 4%.