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Monday, July 16, 2012

Hedge Funds Bet Right Before Longest Winning Streak: Commodities

English: US Commodity Futures Trading Commissi...
English: US Commodity Futures Trading Commission (CFTC) member Michael V. Dunn (Photo credit: Wikipedia)
Hedge funds boosted their bullish commodity bets above 1 million contracts as mounting speculation that China will take more steps to boost growth spurred the longest rally in prices since February.
Speculators raised their net-long positions across 18 U.S. futures and options by 8.9 percent to 1.05 million contracts in the week ended July 10, Commodity Futures Trading Commission data show. That’s the highest since April 3. Wagers on a wheat rally reached a record. The Standard & Poor’s GSCI Spot Index of 24 raw materials climbed for a third consecutive week, jumping 10 percent in the longest winning streak since Feb. 24. Global equities climbed the most in two weeks on July 13, ending the longest slump since November, after a government report showed China’s economy last quarter slowed to the weakest pace since the global financial crisis, putting pressure on Premier Wen Jiabao to boost stimulus measures. Federal Reserve Bank of Atlanta President Dennis Lockhart said the same day that the central bank may need to begin a new program of asset purchases if recent economic weakness persists. ... Continue to read.
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