Commodity fund traders had accumulated a net short position in July amid poor Q2 grind results and the potential influence of COVID-19. Since bottoming out in early July, specs have covered these new shorts, and the market has recovered along with other soft commodities such as sugar and coffee.
After taking the lackluster grind news in stride, concerns have been growing about the upcoming Ivorian election and field of potential candidates. Prices are now above the 200-day moving average ($2,458 per MT for the spot Sep-20 contract), which is seen as a bullish sign by longer-term trending technicians.
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