Hedge Funds Cut Commodities’ Bets to 6-Month Low

Contrarians are you paying attention?

Bloomberg reports that hedge funds cut their bets on commodities to a six-month low even as commodities have rallied a bit.

Speculators trimmed net-long positions across 18 futures and options by 5.4 percent to 654,443 contracts in the week ended Jan. 8, the lowest since June 19, U.S. Commodity Futures Trading Commission data show. Wagers on a corn rally dropped for a fifth week before a reduction in U.S. stockpile data sparked the biggest jump in prices in five months. Gold holdings fell to the lowest since August as the metal snapped a six-week slump.

Gold net-long positions decreased by 13% to the lowest level since August 14. Net-longs in Silver declined 7.7 percent, a sixth straight drop that’s the longest run of declines since May.