(Bloomberg) Speculators increased wagers on rising commodities to the highest level since November just as prices headed for the biggest three-day slide in almost a month.
Money managers expanded combined net-long positions across 18 U.S. futures and options by 7.2 percent to 719,991 contracts in the week ended Jan. 10, Commodity Futures Trading Commission data show. The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 2.5 percent in the following three days.
While the index rose 14 percent from a 10-month low in October, prices dropped last week after the U.S. government predicted supplies of corn and soybeans that were bigger than anticipated by analysts. A report on U.S. retail sales fell short of forecasts while jobless claims exceeded estimates. The dollar rose to a 15-month high, increasing the cost of dollar- denominated raw materials outside the world’s biggest economy.
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