Investment Flows into Commodities Markets - August 2016

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

Agriculture’s OIV decreased by 5.0% to 4,914,815 contracts in July. Meanwhile, money managers decreased their net long positions by 47% to 395,954 lots, largely because of decreasing net length in corn.

Henry Hub’s natural gas OIV decreased by 5.1% m-o-m to 1,011,933 contracts in July. Money managers decreased their net short positions by 7.1% to reach 36,847 lots on increasing demand for cooling.

Copper’s OIV decreased by 18.1% m-o-m to 174,110 contracts in July. Money managers switched to a net long position of 14,130 lots from a net short position of 29,657 on improving manufacturing prospects and recovery in the real estate market in China.

Precious metals’ OIV advanced by 10.1% m-o-m to 835,713 contracts in July. Money managers increased their net long positions by 17.3% to 346,488 lots.