Hedge funds ended October with their lowest exposure to commodities since the summer.
Futures and options on 18 commodities dropped by 11% in the week ended Oct. 30, the day after Hurricane Sandy made landfall in southern New Jersey, the Commodities Futures Trading Commission reports. Bullish oil bets hit a four-month low, as oil refineries on the U.S. East Coast closed in advance of the storm's arrival.
Bets on copper and gasoline also dropped, the former to an eight-week low and the latter for the fourth week in a row.
Other uncertainty seems to have hurt hedge funds' and other investors' taste for commodities, including renewed uncertainty in Europe and tomorrow's U.S. presidential election, which forecasts indicate will be a close contest.