Investment Flows into Commodity Markets - June 2016

Open interest volume (OIV) increased in May for select US commodity markets such as precious metals and copper, while decreasing for agriculture, crude oil, natural gas, agriculture and livestock. Meanwhile, monthly average speculative net length positions increased for agriculture, precious metals and livestock, were relatively stable for crude oil, and declined for natural gas and copper.

Agriculture’s OIV decreased by 2.2% to 5,083,956 contracts in May. Meanwhile, money managers increased their net long position by 2.4 times to 523,680 lots, largely because of increasing net length in corn, the soy complex and sugar for the second consecutive month.

Henry Hub’s natural gas OIV increased by 3.2% m-o-m to 1,120,471 contracts in April. Money managers increased their net short positions by 31% to reach 87,197 lots on large inventories.

Copper’s OIV increased by 3.3% m-o-m to 198,355 contracts in May. Money managers switched to a net short position of 15,799 lots as manufacturing prospects in China slowed.

Precious metals’ OIV advanced by 10.4% m-o-m to 758,145 contracts in May. Money managers increased their net long positions by 11.8% to 253,803 lots.