Hedge Funds Cut Bets Most Since ’08 as Prices Slump: Commodities - Bloomberg

Hedge Funds Cut Bets Most Since ’08 as Prices Slump: Commodities - Bloomberg

Silver, rubber and corn entered bear markets last week, joining declines in raw materials from coffee to wheat, on signs that production will outpace demand. The commodities supercycle, or longer-than-average period of rising prices, has ended and returns are unlikely to match the performance of the past decade, UBS AG said April 2. U.S. employers hired the fewest workers in nine months in March, and the jobless rate in the 17- nation euro area rose to a record.
“There has been a gradual buildup in supplies, and that is especially challenging because slowdown concerns are growing,” said Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management, which oversees about $110 billion of assets. “We’re awash in supplies, so I see prices remaining under pressure until the growth issue gets resolved.”