Investors Dump Commodities as Supercycle Call Meets Skepticism
- Net bullish wagers on 20 materials fall for six straight weeks
- Popular recovery trade facing headwinds amid renewed lockdowns
Soybeans are loaded into a bulk carrier vessel at the Port of Santos in Brazil.
Photographer: Patricia Monteiro/BloombergThis article is for subscribers only.
Net bullish wagers on rising commodity prices fell to the lowest since December last week, raising questions about the commodity supercycle.
Money managers are trimming what had been the largest wager for rising commodity prices in at least a decade as stumbling economic reopening efforts force a reconsideration of the popular recovery trade. A recent bond rout raised worries over inflation and surging bulk shipping rates are seen capping any further upswing.