Monday, 27 February 2017
Last updated 6 min ago
Dec 17 2012 | 10:46am ET
Hedge funds and other investors cut their commodity bets last week amidst growing fears about the U.S.'s fiscal cliff.
While a potential breakthrough came this weekend, when U.S. House Speaker John Boehner tentatively agreed to some tax increases, last week was dominated by uncertainty and a warning from the Federal Reserve. That helped push money manager's bets on 18 futures and options down 11% in the week ended Dec. 11. The 802,817 contracts owned by hedge funds and others is the lowest number in a month, the U.S. Commodities Futures Trading Commission said.
Sugar took a particularly big hit, with a 68% drop in holdings. Wheat contracts dropped 67% to their lowest level since June, and oil holdings fell 21%. Contracts on 11 farm goods fell 9.6%.
Gold holdings, by contrast, rose 3%.