COMMODITIES UPDATES 26.06.2012:- NEW YORK: Speculators increased bets on a rally in commodities for a second consecutive week, just as prices tumbled into a bear market after the Federal Reserve refrained from expanding monetary stimulus.
Hedge funds and other money managers raised net-long positions across 18 US futures and options by 7% to 628,560 contracts in the week ended June 19, Commodity Futures Trading Commission data show. That's the highest in four weeks and the first consecutive gain since the end of February.
Commodities slumped into a bear market on June 21, a day after the Fed extended its Operation Twist program while refraining from a third round of debt buying known as quantitative easing.
Reports last week showed that Americans filed for more jobless claims than forecast, sales of previously owned US homes fell in May and manufacturing in the Philadelphia region contracted this month at the fastest pace in almost a year.
"People were thinking that we'd see the next stimulative event, and they started to front-run the trade, and that got reversed quickly," said Jeffrey Sherman, who helps manage $37 billion of assets for DoubleLine Capital in Los Angeles. "We're in for a volatile time in commodities as people try to ascertain what's going to drive growth."
Hedge funds and other money managers raised net-long positions across 18 US futures and options by 7% to 628,560 contracts in the week ended June 19, Commodity Futures Trading Commission data show. That's the highest in four weeks and the first consecutive gain since the end of February.
Commodities slumped into a bear market on June 21, a day after the Fed extended its Operation Twist program while refraining from a third round of debt buying known as quantitative easing.
Reports last week showed that Americans filed for more jobless claims than forecast, sales of previously owned US homes fell in May and manufacturing in the Philadelphia region contracted this month at the fastest pace in almost a year.
"People were thinking that we'd see the next stimulative event, and they started to front-run the trade, and that got reversed quickly," said Jeffrey Sherman, who helps manage $37 billion of assets for DoubleLine Capital in Los Angeles. "We're in for a volatile time in commodities as people try to ascertain what's going to drive growth."
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