Second largest inflows on record into short copper ETP. ETFS Daily Short Copper (SCOP) received US$37mn of inflows, the second highest weekly inflows since inception. Only topped by the $59mn weekly inflow in January 2013, when disappointing US GDP figures dented high expectations for global growth. On-going concern over a temporary copper surplus and investors heeding to technicals are likely to explain the bearish positions placed last week.
Long corn ETP sees largest inflow since July 2009. ETFS Corn (CORN) received the highest weekly inflows since July 2009, totalling US$13mn. Due to wet weather conditions, only 12% of the total area assigned to corn in the US has been planted according to the USDA, the lowest level at this time of year since 1984. Despite higher acreage of land devoted to corn plantation this year compared to last (when severe droughts led to a bad crop), ETP investors appear to be taking the view that ultimately prices will move higher.
ETFS Longer Dated Energy (ENEF) saw US$18mn of outflows. With US crude market still over-supplied, some investors appear to be turning bearish on energy sector. US crude output has reached its highest level since February 1992. As a result, US crude stocks (excluding reserves) are now 20% above their historic average and at their highest level since records were first kept in 1982. This apparently has caused investors to cut some of their long broad energy exposures.
Key events to watch this week: US, EU, Chinese and Japanese industrial production and the German ZEW will provide key points on the strength of the recovery in industrial countries. Platinum Week in London commences today, with key forecasts from Johnson Matthey and company reports like to keep a focus on the PGMs.