Investment flows into commodities
The total open interest volume (OIV) in major US commodity markets increased slightly to 8.4 million contracts in November, with the OIV declining for crude oil, agriculture, copper and livestock by 2.0%, 1.8%, 1.2% and 0.5%, respectively, while precious metals and natural gas both showed increases of 4.3%.
Total net length speculative positions in select commodities increased by 26.2% m-o-m to 746,777 contracts in November due to increases in net long positions on agriculture, natural gas and precious metals, and a reduction in copper net shorts, while net length declined for crude oil and livestock.
Agricultural OIV was down 1.8% m-o-m to 4,626,588 contracts in November. Meanwhile, money manager net long positions in agriculture increased by 75.6% to 334,358 lots, continuing the upward trend started the previous month, as low prices have triggered strong export demand.
Henry Hub natural gas OIV increased by 4.3% m-o-m to 951,133 contracts in November. Money managers switched their stance to a net long position during the month from a net short of 6,758 lots in October to a net long of 16,985 contracts in November, as cold weather in the US translated into storage withdrawals. Copper OIV declined by 1.2% m-o-m to 168,161 contracts in November. Money managers reduced their net short position to 2,739 lots versus 11,524 contracts the previous month.
Gold’s OIV increased by 6.6% m-o-m to 427,150 contracts in October. Money managers decreased their net length in gold by 11.5% to 43,068 lots as strong GDP readings and employment reports in the US suggested an interest rate hike by the US Federal Reserve in 1H15.