Hedge Funds Betting on Copper and Other Commodtities as Economies Grow

February 12, 2013 James Heinsman In the News

The week ending February 5, 2013 marked four consecutive weeks in which hedge funds increased their positions on commodities while at the same time becoming the most bullish on copper since December. Analysts believe this is partially a reaction to signs of a faster economic recovery in China and in the United States.

Investors increased their number of long positions in 18 futures and options in the US during the first week in February by 11 percent. That makes the total number of contracts bought during that week 885,655. The four week period that ended on February 5 is the longest consistent occurrence of gains in over half a year. This data, provided by the US Commodity and Futures Trading Commission, also shows that speculators added their bets on everything from soybeans and corn to copper and platinum.

“With China and the U.S. registering growth, the economically sensitive commodities will do well,” said Michael Strauss, chief investment strategist at Commonfund in Wilton, Connecticut. “The global environment is favorable for commodities.”

Commodities, Commonfund, copper, futures, Michael Strauss,

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