Commodities had a resurgence in 2016, with the first annual advance since 2010. The gains will continue next year for many of the markets, at least that’s what hedge funds are signaling.
Money managers boosted their combined net-long position, or bets on prices gains, across 18 commodities by 9.7 percent in December, government data show. A year earlier, the funds were net-short, or wagering on declines. Investors last week added to bullish positions in cotton, cattle, crude oil and soybean meal, but aren’t optimistic for corn, cocoa and wheat.