Speculators increased wagers on commodities for an 8th week running, the longest streak on record, just before a report on US job growth sparked the biggest price rally in a month.
Hedge funds raised their net-long positions across 18 US futures and options by 4.9% to 1.22-M contracts in the week to 31 July, the highest since 6 September, UA Commodity Futures Trading Commission data show.
Bets more than doubled since reaching this year's low on 5 June, capping the longest increase since the data began in June 2006.
Gold holdings climbed by the most since November 2008, and Cocoa wagers reached a 1-yr high.
Commodities rose 2.7% on 3 August, the most in a month, as the US Labor Department said jobs at carmakers and healthcare providers boosted employment.
US service industries that make up almost 90% of the world's largest economy expanded at a faster pace in July.
Contracts outstanding in raw materials climbed last month for the 1st time since April as investors speculated growth may accelerate and boost demand for everything from Cotton to Pork to Zinc.
The Standard & Poor's GSCI Spot Index rose 0.9% last week, and reached a 2 wk high on 3 August. The MSCI All-Country World Index of equities advanced 0.8% and the USD slipped 0.4% against a measure of 6 trading partners.
US Treasuries lost 0.1% according to a Bank of America Corp. index. The GSCI measure fell 0.4%.
Thirteen of the 24 commodities tracked by S&P rose last week, led by Cotton and Cocoa.
Corn reached an all-time high of $8.205 bu on 31 July as the worst Midwest drought since Y 1956 wilted US crops. Stay tuned...
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.