Hedge funds boosted bullish commodity bets to the highest since 2012 as extreme weather threatened global crops and a polar blast increased U.S
Hedge funds boosted bullish commodity bets to the highest since 2012 as extreme weather threatened global crops and a polar blast increased U.S. demand for heating fuel. The net-long position across 18 U.S. traded commodities rose 18% in the week ended Feb. 18, the highest since September 2012. Investors tripled the net-long position in arabica coffee this month to the most bullish since May 2011. Gold wagers climbed to a 16-week high. What's our view at FT Money? Weather risks have certainly been a factor in rising prices for soft commodities but they are not the entire story. Short covering and some speculative purchases have also been a factor. Similarly, somewhat better crops in 2013 helped to reverse long positions from relatively high levels and encourage short selling.
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