Hedge Funds Commodity
Hedge Funds Raise Bullish Bets on Commoditiesrecently got burned on a recent sell off of commodities, hedge funds appear to be banking on a rebound.
Money managers are betting on higher commodity prices for the first time in five weeks.
Data from the Commodity Futures Trading Commission shows speculators’ combined net-long positions across 18 U.S. futures and options rose 0.2% to 656,691 contracts for the week ending October 11.
The Standard & Poor's GSCI Index of 24 commodities rose 5.2% last week, its biggest jump since December.
According to Bloomberg, hedge funds had cut their bets by 49% in the previous four weeks.
Of the 24 futures tracked by the S&P GSCI, 21 rose last week, including sugar (up 11%), soybeans, crude oil (which reached a three-week high) and cattle futures. Cotton, nickel and aluminum fell.