“Funds cut their bearish bets on copper by -50% to a net-short position of 2,011 contracts. That’s the least bearish since week ending November 8. Barclay’s raised its forecast for this year’s shortage in copper supply on January, citing import demand from China, the world’s biggest user of the metal, and mine disruptions.”
“Money managers expanded their combined net-long positions across 18 U.S. futures and options by 25% to 671,915 on higher cotton prices surged by 8,303 to 14,986 contracts, the CFTC data show. Cotton traded on ICE Futures U.S. in New York increased in seven of the past eight sessions. The Confederation of Indian Textiles Industry said January 5 that production in the country, the world’s largest exporter after the U.S., may be smaller than forecast. “It could be another year on for cotton in general,” said Peter Sorrentino, a senior fund manager at Huntington Asset Advisors in Cincinnati who helps oversee $14.5 billion of assets. “Some of these things are definitely under-owned. Prices could see a spike on just shortfalls in supply.”
“A measure of 11 U.S. farm goods showed speculators raised bullish bets in agricultural commodities by +35% for a second consecutive week, reaching 368,783, the highest since the week ended November 15. Corn wagers rose +30% to 192,500, the biggest gain since the week ended July 13, 2010. Net-long positions in soybeans increased 39% to 33,020, the most bullish holding since early November.” ‘There was definitely a cleaning house of sorts in many commodities towards the end of the year, and that resulted in shorter-term oversold conditions in some commodities,’’ said Michael Cuggino, who helps manage about $15 billion of assets at Permanent Portfolio Funds in San Francisco. ‘‘It’s not surprising to me that buying has perked up a little bit early in the New Year. The global growth story is still there.’’ -Elizabeth Campbell 1-9-12 Bloomberg.net
