Tuesday, 31 March 2015
Last updated 12 hours ago
Oct 17 2011 | 9:04am ET
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.
Speculators showed themselves most bullish on energy last week, with a 39% gain in heating oil, a 23% gain in gasoline and a 7.8% gain in crude oil, according to the CFTC. Funds continued their love affair with gold, boosting their bets by 3.4% and upping those on silver 1.3%.
On the other hand, speculators dialed back their bets on corn, soybeans and coffee, despite rising prices for those crops and bearish bets on copper were up 80% from a week earlier, leaving investors with a net-short position of 9,489 contracts.
Investors redeemed $275 million from commodity funds in the week ended Oct. 12, the lowest amount in three weeks, according to Cambridge, Massachusetts-based EPFR Global, while funds focusing on gold and precious metals attracted $72 million.
Cameron Brandt, research director at EPFR, told Bloomberg the outflow was “a fairly small one, which sort of suggests a slowing down while people wait to see if this latest burst of optimism has any legs.”
Mar 9 2015 | 6:35am ET
As more investors look to diversify, many are beginning to use retirement funds to invest in alternative assets such as private equity and real estate. Kelly Rodriques, CEO & President of PENSCO Trust Company, explains how companies can connect with those looking to use their retirement accounts in a different way. Read more…
Mar 20 2015 | 12:45pm ET
StreetWise Partners, a non-profit organization that works with low-income individuals to help them overcome employment barriers, raised over $275,000 at the 2015 Raising the Ante Charity Poker Tournament and Casino Event last Wednesday evening at Capitale. Here are some photos from the event. Read more…