Bullish Wagers Drop to Six-Month Low on U.S. Budget: Commodities

Investors cut bullish commodity bets to the lowest in almost six months as U.S. budget talks stalled, increasing concern that lawmakers’ failure to reach an agreement with push the world’s biggest economy back into a recession.

Hedge funds and money managers reduced net-long positions across 18 U.S. futures and options by 5.6 percent to 758,256 contracts in the week ended Dec. 18, the lowest since June 26, U.S. Commodity Futures Trading Commission data show. Gold holdings dropped to the lowest since August, while those for silver tumbled 14 percent, the most since July 24. Traders turned bearish on wheat for the first time in six months.