According to the CFTC Commitments of Traders report for the week ended August 31, NET LENGTH for crude oil futures sank -17 784 contracts to 356 528 for the week. Speculative long position declined -13 154 contracts, while shorts gained +4 630 contracts. It is possible to see an increase in net longs next week as crude oil prices strengthened after disappointing US job report. Yet, we expect the rebound to be short-lived. For refined oil products, NET LENGTH for heating oil rose 4 563 contracts to 38 583, while that for gasoline increased +5 337 contracts to 42 221. NET SHORT of natural gas futures declined -21 882 contracts to 144 695 during the week.
Gold futures’ NET LENGTH gained +5 897 contracts to 216 550. Strength in gold price over the past week signals that net longs would increase further. The yellow metal has gained support from tamed speculations of Fed’s tapering after the Jackson Hole symposium and a softer than expected nonfarm payrolls report. Silver futures’ NET LENGTH added +470 contracts to 22 331. Note, however, that bets were trimmed on both sides. For PGMs, NET LENGTH of Nymex platinum futures dropped -1 086 contracts to 8 057, while NET SHORT for palladium futures slipped -185 contracts of 181.
