Copper Speculators Trim Their Bullish Bets After Recent 2-Year High
Zachary Storella | Nov 02, 2020 12:19AM ET
Large precious metals speculators slightly cut back on their bullish net positions in the Copper Futures markets this week following a strong runup, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
The non-commercial futures contracts of Copper futures, traded by large speculators and hedge funds, totaled a net position of 66,916 contracts in the data reported through Tuesday October 27th. This was a weekly dip of -349 net contracts from the previous week which had a total of 67,265 net contracts.
The week’s net position was the result of the gross bullish position (longs) dropping by -4,271 contracts (to a weekly total of 126,722 contracts) while the gross bearish position (shorts) fell by a lesser amount of -3,922 contracts for the week (to a total of 59,806 contracts).
The Copper speculative positions edged lower this week following gains in eight out of the previous ten weeks. This recent streak of rising bullish positions boosted the net position to the highest level in one hundred and nineteen weeks on September 22nd at a total of +67,841 contracts and also just below that same level last week at +67,265 contracts. Copper speculative bets turned bullish starting in early June and have gained in fifteen out of the past twenty-one weeks – culminating in the best levels in over two years.
h2 Copper Commercial Positions:/h2The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -71,149 contracts on the week. This was a weekly loss of -2,100 contracts from the total net of -69,049 contracts reported the previous week.
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Copper Futures (Front Month) closed at approximately $3.09 which was a drop of $-0.05 from the previous close of $3.14, according to unofficial market data.
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