Hedge Fund Money in Commodities at 1-Year High

The money held by hedge funds and other big speculators in commodities has hit a one-year high, with markets rallying in anticipation of U.S. and European economic stimulus efforts, trade data showed on Friday.

Led by surges in gold, oil and grains prices, the speculators — known by the regulatory moniker “managed money” — increased their bullish net long positions to above $111 billion (69 billion pounds) in the week to Sept 4, according to Reuters calculations of data issued by the U.S. Commodity Futures Trading Commission.

Barani Krishnan reports that the last time managed money positions in commodities crossed $111 billion was in the week to September 6, 2011.

On a weekly basis, hedge funds and other big speculators pumped a notional value of nearly $4 billion into U.S. commodity markets, building up net longs for a third straight week, the CFTC data showed.

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