Hedge Funds Lose on Wheat Bets, Do Better on Copper

May 30, 2012 Debbie Jacobs In the News

Recent data has revealed that before the market stutter several days ago, hedge funds bought almost $2 billion worth of wheat contracts. According to the Commodity Futures Trading Commission, money managers were luckier with copper bets; hedge funds dropped almost $670 million in long positions right as the metal suffered one of its worst price drops this month.

Both commodity price drops were a result of worldwide concern regarding Greece and its potential withdrawal from the Eurozone, as well as heightening struggles in Spain. The hesitant economies of both the U.S. and China also contributed to the market blip.

“There is a really high correlation now between the rumbles out of Europe and weakness in the euro, and how that translates into any asset class that is not the U.S. dollar or U.S. Treasuries,” said Sean McGillivray of Great Pacific Wealth Management. “As a result, we’re seeing markets like copper and commodities in general just getting hammered, without much regard for other fundamentals.”

Copper Bets, Economy, Euroone, Greece, Hedge Fund Industry,

Comments are currently closed.

Powered by WordPress. Designed by elogi.