Money managers increased total net-dreams positions, the largest so far, with 18 inputs negative bets are doubled in just two weeks.
Market unrest in China, the biggest buyer of raw materials, added to concerns about their consumption. The stronger dollar also undermines the authority of commodities as alternative investments.
Goldman Sachs Group Inc. predicts that the continued decline will stimulate the reduction of supply, the bank does not expect prices to rebound until the second half of this year.
Bloomberg Commodity Index fell by 4.2% last week and touched its lowest level since its inception in 1991
Excess supply is the main driver for the bear market of all raw materials, according to the report by Jeffrey Currie analyst at Goldman. Prices will probably have to fall further to stimulate the reduction of production, but commodity markets will rebound later in the year, "the birth of a new bull market," analysts said.
E.Dimitrov JrTrader
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.