Commodities Rise to 12-Week High, Boosted by Coffee, Wheat, Sugar Rallies

Commodities rose to the highest level in 12 weeks on speculation that the global economy’s recovery will lift demand for energy, metals and food.

The Reuters/Jefferies CRB Index of 19 raw materials climbed as much as 1.6 percent to 270.53, the highest since May 5. Coffee, gaining as much as 4.3 percent, approached a 12-year high. Wheat headed for the biggest monthly gain since 1973.

European confidence in the economic outlook rose in July to the highest level in more than two years, and U.S. first-time jobless claims fell last week, separate reports showed today. The CRB index headed for the fourth straight weekly increase.

“Investors are flocking into the commodities, everything from sugar to copper is going up together,” said Christian Wagner, who helps manage $150 million as chief investment officer of Longview Capital Management in Wilmington, Delaware. “There are some good signs for a continued global recovery.”

The CRB rose 1 percent to 268.83 at 12:48 p.m. New York time.

Commodity traders increased bets on price gains for raw materials by 50 percent in the past two weeks at futures exchanges in New York and Chicago.

Hedge-fund managers and other large speculators held net- long positions in gold, copper, crude oil and 17 other commodities of 782,247 contracts in the week ended July 20, according to data from the U.S. Commodity Futures Trading Commission compiled by Bloomberg. That compared with 520,530 contracts in the week ended July 6. The two-week gain was the biggest since May 2009.

To contact the reporter on the story: Millie Munshi in New York at mmunshi@bloomberg.net.

• Tweet
• More
  • Business Exchange
  • Buzz up!
  • Digg
• Print
• Email