Dollar Longs Cut as Commodities See Record Surge
The latest Commitments of Traders (COT) update from Saxo has revealed significant shifts in market positioning across forex and commodities. The report, covering the week ending August 25, showed that dollar longs were cut by $8.3 billion to $27.6 billion.
This reduction was led by short covering in the euro, Canadian dollar, Swiss franc, and New Zealand dollar, while yen selling continued amid unfavorable US-Japan rate differentials.
In commodities, agriculture length surged at a record pace, with the managed-money net long across ten major grains and softs jumping by 546k contracts. This was led by corn, soybeans, sugar, cotton, and Kansas wheat, which all reached multi-year positioning highs.
Gold futures buying remained relatively restrained despite a 6.2% rally, while copper length eased from elevated levels. In energy, funds cut Brent longs by 11% as increased Hormuz flows reduced the Middle East risk premium.