Salient to Investors:
Hedge funds cut bullish commodity bets for a sixth straight week, the longest slump since the depths of the global recession four years ago, on mounting concern that economies are slowing. Investors turned bearish on copper for the first time since August.
Morgan Stanley said weaker growth and more supply will mean surpluses in sugar, aluminum and zinc, and supplies will exceed demand in cotton, nickel and lead this year. Barclays expects the glut in aluminum to increase 29 percent in 2013.
Martin Murenbeeld at DundeeWealth is not bullish on commodities as he sees little improvement in the world economy for some time.
Cameron Brandt at EPFR Global said money managers added a net $681 million to commodity funds last week, with gold and precious metals accounting for $732 million.
Peter Jankovskis at Oakbrook Investments said demand for commodities depends on what policies China adopts and the growth in the economy.
Societe Generale said the bullish effects from dovish ECB and Fed announcements have clearly been exhausted.
Michael Shaoul at Marketfield Asset Mgmt is bearish on commodities and says the QE story pushed commodities higher but it is foolish to expect further gains as there are too many uncertainties.