CFTC: COMEX Copper: Reduction In Overall Open Interest With Managed Money Adding To Longs

Mumbai (Commoditiescontrol): Commitment of Traders Report – 13 February 2016

Introduction

Commitment of Traders Report was released yesterday 12 February 2016. Positions reported are as on 9 February 2016

Rounding off errors may be present in calculations.

Copper – COMEX

Futures open interest accounted for 99.57 percent of the total open interest with options just accounting for 0.43 percent.

Market continued to be net long with total open interest reducing by 5.94 percent. Reduction in both long as well short positions was seen. Reduction of long positions was moderately higher than reduction in short positions. Week on week long positions have steadily been declining.

Hedgers reduced long positions and added to short positions with this segment being net short. Shorts have increased in comparison to previous week.

Swap dealers reduced both long and calendar spread positions with a very small addition to short positions. Swap Dealers however were net long.

Managed money have decreased their short positions drastically and adding to long positions at the same time. Though this segment continues to be short difference between longs and shorts have reduced by around 11000 contracts from the previous week. Calendar spread positions were also seen declining.

Other reportable positions saw the exact opposite to last week. This week saw this segment reduce positions in all three categories at nearly double the rate of additions seen last week. However other reportable continued to be net short with the quantity of short positions increasing.

Non-reportable positions continued to reduce short positions and add long positions. Though this segment continued to net short there was a nearly 50 percent reduction in short positions.

4 or less large traders added to both long and short positions with larger addition to short positions.



Source: CFTC

Outlook

Managed money has clearly tilted its favour on being on the long side in the market rather than the short side. Reduction in total long position is being seen as commercials and other reportable positions are reducing their long positions. Though market participants are getting more into a wait and watch mode by unwinding existing positions future price expectation seems to be tilting in the favour of the bulls. However more confirmation on the same needs to be seen.

(By Commoditiescontrol Bureau; +91-22-40015523)