Hedge funds have never been this bearish on commodities
Large scale futures investors like hedge funds or so-called managed money have entered an unprecedented bearish position towards commodities markets.
According to the Commodity Futures Trading Commission's weekly Commitment of Traders data, five weeks of selling has seen 13 of the 24 commodities tracked pushed into net short positions.
Those include the major commodities like crude oil, gasoline, gold, copper, soybeans, corn and wheat where speculators are betting that these commodities will be cheaper in future.
Sentiment on commodity markets have not been this bearish since at least 2006, when the Commodity Futures Trading Commission first began tracking the data.
Saxo Bank's head of commodity strategy Ole Hansen says the weakness can be ascribed to oversupply in many sectors, worries over the outlook for top commodity importer China and a stronger US dollar.