Hedge Funds Most Bearish Ever onCopper, Favor Gold: Commodities                       - Bradley Associates
Hedge funds are making the biggest bet against copper on record as globalinventories expand to a nine-year high, while con...
Copper prices are heading for a second consecutive monthly loss inwhat would be the longest slump since the end of 2011. S...
“We’re sitting on unprecedented stockpiles of copper and other metals,”said Jack Ablin, the chief investment officer of BM...
LME StockpilesInventories of copper monitored by the London Metal Exchange jumped 77 percentthis year to 565,350 tons, the...
Air Conditioners Sales of air conditioners and orders for electrical equipment suggest improving demand inChina, Rachel Zh...
“The risk appetite has certainly improved over the last several months,” saidNelson Louie, the global head of commodities ...
Gold Gains Gold prices have risen 1.8 percent in March, heading for the first monthly gain since September. The metal is s...
Money managers increased their bullish bets on natural gas to 46,148contracts, from 2,995 a week earlier, the CFTC data sh...
Wagers on higher corn prices increased 66 percent to 145,535 contracts, the biggestgain since July 2010. Speculators reduc...
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Hedge funds most bearish ever on copper, favor gold commodities

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http://www.bloomberg.com/news/2013-03-24/hedge-funds-most-bearish-ever-on-copper-favor-gold-commodities.html

bradley associates financial solutions blog Hedge Funds Most Bearish Ever on Copper, Favor Gold: Commodities

Hedge funds are making the biggest bet against copper on record as global inventories expand to a nine-year high, while concern that Europe’s debt crisis will spread spurred the biggest gain in gold bets since 2008.

Speculators raised net-short positions in U.S. copper futures and options by 53 percent to 25,719 contracts in the week ended March 19, according to Commodity Futures Trading Commission data that begins in 2006. A jump in bullish bets on corn, gold and natural gas boosted overall holdings across 18 raw materials for a second consecutive week.

Copper prices are heading for a second consecutive monthly loss in what would be the longest slump since the end of 2011. Stockpiles monitored by exchanges in London, Shanghai andNew York stand at about 873,000 metric tons, or almost five months of North American demand, and Barclays Plc is forecasting a second annual surplus. Gold climbed for three weeks, the longest rally in six months, amid turmoil over Cyprus’s efforts to win a bailout to avert its financial collapse.

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Hedge funds most bearish ever on copper, favor gold commodities

  1. 1. Hedge Funds Most Bearish Ever onCopper, Favor Gold: Commodities - Bradley Associates
  2. 2. Hedge funds are making the biggest bet against copper on record as globalinventories expand to a nine-year high, while concern that Europe’s debtcrisis will spread spurred the biggest gain in gold bets since 2008.Speculators raised net-short positions in U.S. copper futures and options by53 percent to 25,719 contracts in the week ended March 19, according toCommodity Futures Trading Commission data that begins in 2006. A jumpin bullish bets on corn, gold and natural gas boosted overall holdings across18 raw materials for a second consecutive week. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  3. 3. Copper prices are heading for a second consecutive monthly loss inwhat would be the longest slump since the end of 2011. Stockpilesmonitored by exchanges in London, Shanghai andNew York standat about 873,000 metric tons, or almost five months of NorthAmerican demand, and Barclays Plc is forecasting a second annualsurplus. Gold climbed for three weeks, the longest rally in sixmonths, amid turmoil over Cyprus’s efforts to win a bailout to avertits financial collapse. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  4. 4. “We’re sitting on unprecedented stockpiles of copper and other metals,”said Jack Ablin, the chief investment officer of BMO Private Bank in Chicago, which oversees about $66 billion of assets. “Demand has been pretty tepidfor industrial metals. In the global economy, we’re seeing improving growth,but it’s still at a slow rate.”Copper dropped 1.5 percent to $3.466 a pound on the Comex last week, thebiggest retreat in a month. The Standard & Poor’s GSCI Spot Index of 24commodities fell 0.9 percent. The MSCI All-Country World Index of equitiesdeclined 1.1 percent and the dollar rose 0.1 percent against a basket of sixmajor trading partners. Treasuries returned 0.4 percent, a Bank of AmericaCorp. index shows. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  5. 5. LME StockpilesInventories of copper monitored by the London Metal Exchange jumped 77 percentthis year to 565,350 tons, the highest since October 2003. Supplies tracked by theShanghai Futures Exchange are at the highest since the data begins in January 2003.Chinese imports of the refined metal declined in February to the lowest in 19 months,while exports rose for a sixth month, government figures showed March 21.Prices dropped along with most commodities last week as Cyprus neared the brink offinancial collapse, reviving concern that Europe’s debt crisis will erode global growth.The continent accounts for 18 percent of copper demand, Barclays estimates.Overnight, Cyprus dodged a disorderly default and unprecedented exit from the eurocurrency by bowing to demands to shrink its banking system in exchange for a 10billion-euro ($13 billion) bailout. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  6. 6. Air Conditioners Sales of air conditioners and orders for electrical equipment suggest improving demand inChina, Rachel Zhang, an analyst at Morgan Stanley in Hong Kong, said in a report last week. The nation’s passenger-vehicle market rose 20 percent to 2.84 million units in January and February in the strongest start since 2010. The transportation industry accounts for about 11 percent of the country’s copper use and household appliances 15 percent, according to data compiled by Bloomberg Industries. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  7. 7. “The risk appetite has certainly improved over the last several months,” saidNelson Louie, the global head of commodities at New York-based CreditSuisse Asset Management, who helps manage $11.3 billion. “The overallU.S. economy has shown resilience, and China seems to be improving aswell.”Investors withdrew a net $929 million from commodity funds in the weekended March 20, saidCameron Brandt, the director of research forCambridge, Massachusetts-based researcher EPFR Global, which tracksmoney flows. Gold and precious metals had an outflow of $978 million. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  8. 8. Gold Gains Gold prices have risen 1.8 percent in March, heading for the first monthly gain since September. The metal is still down 4.1 percent this year as the U.S. unemployment rate fell and assets in exchange-traded products backed by gold dropped 6.7 percent. Investors increased their bullish bets by 63 percent to 70,193 contracts, the biggest expansion since September 2008. The precious metal has jumped 81 percent since the end of 2008 as central bank measures intended to stimulate economic growth increased speculation that inflation will accelerate. TheFederal Reserve on March 20 left unchanged plans to hold its target interest rate near zero percent as long as U.S. unemployment remains above 6.5 percent. The jobless rate last month was 7.7 percent. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  9. 9. Money managers increased their bullish bets on natural gas to 46,148contracts, from 2,995 a week earlier, the CFTC data show. Oil wagersclimbed 3.2 percent to 172,268 contracts, and those for gasoline rose 1.4percent to 77,801 contracts. Natural gas advanced 18 percent this year asproduction gains slowed and cold weather bolstered heating demand.Farm BetsA measure of speculative positions across 11 agricultural products fromwheat to coffee to cattle increased 9.1 percent to 265,475 contracts, thehighest since Feb. 12. [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren-te-zijn ]
  10. 10. Wagers on higher corn prices increased 66 percent to 145,535 contracts, the biggestgain since July 2010. Speculators reduced their negative outlook for wheat to 33,457contracts from a net-short position of 41,519 a week earlier.Corn stockpiles before the next harvest will fall to 632 million bushels, the lowestsince 1996, theU.S. Department of Agriculture said March 8. The agency raised itsforecast for use of the grain in animal feed by 2.2 percent to 4.55 million bushels.Soybean inventories may drop to the lowest since 2004.“Prices are going to be driven by supply-and-demand considerations and technicalfactors for each commodity,” said Walter ‘Bucky’ Hellwig, who helps manage $17billion of assets at BB&T Wealth Management in Birmingham, Alabama. “Cropinventories are creating support in prices for corn. The copper flows show there arestill doubts about global growth.” [ Related Articles: https://foursquare.com/infobradley andhttp://www.good.is/posts/bradley-associates-hoe-groot-moet-uw-nest-eieren- te-zijn ]

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