Hedge funds and large investors were busy in week 33: While mounting concern about the economy has wiped more than USD 8 trillion off the value of global equities in just four weeks, Commodity Futures Trading Commission data shows that hedge funds and other speculators increased bullish commodity bets by 2.5 percent in the week ended 16 August.

Traders still expect production shortfalls in copper, corn and oil as emerging economies expand. Wagers on corn, silver and soybeans rose and those on oil were little changed. This is in clear contrast to the IMM CFTC FX data, showing capitulation and position reductions.

Net-long positions, or bets on higher prices, held by speculators in 18 commodities rose to more than 1 million futures and options in the week through 16 August, according to the CFTC in Washington. That’s a recovery from the previous week, when the balance of wagers declined 19 percent as oil prices crashed.

Energy: Bets on higher prices shrank for gasoline, heating oil, sugar and copper in the week.

Metals: Silver bets jumped 9.8 percent. Copper bets that prices will rise outnumbered wagers they will fall by 2,536 contracts. Futures contracts anticipate prices above USD 4 from December through the middle of 2013. Gold speculative longs reduced marginally while other precious metals moved higher.

Grains: Hedge funds and other speculators increased bets on rising corn prices by 9.6 percent in the week while bullish wagers on soybeans jumped 25 percent.

Source: www.tradingfloor.com