Speculators Continue To Buy Precious Metals Futures, Options – CFTC

Originate:本站　Date:2012-09-25

24 September 2012, 11:23 a.m.
By Debbie Carlson
Of Kitco News
(Kitco News) - For the fifth week in a row, speculators snapped up precious metals traded on the Comex division of the New York Mercantile Exchange and the Nymex, according to U.S. government data released Friday.

For the week ended Sept. 18, speculators in the Commodity Futures Trading Commission’s weekly commitment of traders report saw their net-long positions in precious metals rise in both the legacy and disaggregated reports. Activity in copper was mixed, but speculators held on to their net-long position in the red metal in both reports.

For the time frame measured, the most-active December gold contract rallied $36.30 to $1,771.20 an ounce as of Sept. 18. December silver gained $1.152 during the week to $34.718, and October platinum gained $29.30 to $1,636.30. December palladium fell $7.55 to $667.35. December copper rallied 9 cents to $3.7870 a pound.

Managed-money accounts piled in gold futures and options, increasing their net-long position to 178,426 contracts. Managed-money accounts added 13,428 gross longs and added 725 gross shorts. Producers saw a big reduction in exposure on both sides but remained net-short as they cut more gross longs than gross shorts. Swap dealers are also net-short, having cut gross longs and significantly bumped up gross shorts.

Non-commercials in the legacy report also sharply increased their net-long position, having added 16,798 gross longs and trimmed 546 gross shorts. They are now net-long 221,267 contracts. Commercials are net-short, having added many more gross shorts than gross longs.
UBS said the speculative build-up in gold since the position-building began in mid-August now sits at 85% of the all-time high. “It is not yet stretched by historical standards, but is certainly getting closer,” the firm said.

The silver net-long position for the managed-money accounts increased to 30,986 contracts. The rise came from adding 1,421 gross longs and subtracting 86 gross shorts. Producers are net-short but saw that position reduced as they cut many more gross shorts than gross longs. Swap dealers are net-short and increased that position by cutting gross longs and hiking gross shorts.

In the legacy report, the silver net-long for non-commercials also increased. They added 2,174 gross longs and added 303 gross shorts. They are now net-long 38,215 contracts. Commercials are net-short and added gross positions to both sides, with a bias to the short side.

Managed-money accounts in platinum increased their net-long position. They are now net-long 27,643 contracts, having added gross longs and cut gross shorts. Non-commercials built on the rise in their net-long position, which now is 36,978 contracts, having cut many more gross shorts than gross longs. Commercials are net-short, having added more gross shorts than gross longs.

Commerzbank analysts said the rise in the managed-money net-long positions is the “highest level since this data series began in December 2009. Money managers evidently have no faith in the ‘peace’ in South Africa,” likely referring to the wage deal Lonmin and workers reached recently.

In palladium, the managed-money accounts bumped up their net-long position to 9,511 contracts. They added gross longs and cut gross shorts to raise their net-long position. In the legacy report, non-commercials increased gross longs and decreased gross shorts, raising their net-long to 11,208 contracts. Commercials added exposure on both sides, increasing their net-short.

UBS pointed out the rise in palladium’s speculative net-long is the first time since late August that the speculator’s activity in palladium “was dominated by an increase in gross longs rather than a reduction of gross shorts.”

The copper net-long position for the managed-money accounts slipped slightly to 17,164 contracts, as they added more gross shorts than gross longs. Funds increased their net-long position in the legacy report, having added more gross longs than gross shorts. They are net-long 3,004 contracts. Commercials are net-short, but barely, having cut gross longs and added gross shorts.

The reduction in the managed-money net-long position is worth watching, Commerzbank said. “If this trend were to continue, this could prevent any rise in the price of copper in the short term. In the medium to long term, however, we believe the price has further potential,” they said.