Hedge Funds Bearish on Commodities for First Time Since 2016
- Investors had a net-short position on raw materials on July 30
- Concerns over China’s economy, ample supplies drive reversal
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Hedge funds have turned predominantly bearish on commodities futures for the first time since 2016, showing increased pessimism on demand for raw materials amid economic slowdown fears.
Money managers held a net position of almost 58,600 contracts used to bet on lower prices for a basket of 20 raw materials in the week ended July 30, according to U.S. Commodity Futures Trade Commission data compiled by Bloomberg. For more than eight years — including the peak of the pandemic — investors had held a net bullish wager on prices.