Salient to Investors:

Hedge funds et al raised net-long positions across 18 U.S. futures and options last week, the highest in four weeks and the first consecutive gain since the end of February. Commodities slumped into a bear market June 21.

Jeffrey Sherman at DoubleLine Capital expects volatility in commodities as people seek a driver for growth.

Janna Sampson at Oakbrook Investments said any Fed action implies the economy is weak, which is bad for commodities, the outlook is very dependent on Europe.

Speculators raised bullish bets in agricultural commodities by 13 percent last week, the most since May 22. 

Cameron Brandt at EPFR said investors added $1.16 billion to commodity funds in the week ended June 20, all attributable to gold and precious-metals funds, which took in $1.2 billion, the most in 20 weeks.

Bets on rising gold prices gained 5 percent, the highest since May 1 and the fourth straight gain, the longest bullish streak since early February.


Jeffrey Sica at SICA Wealth Management said a cash injection by policy makers would make commodities attractive as alternative assets amid the threat of accelerating inflation. Sica sees tremendous demand for certain raw materials, such as grains, and expects prices to rise.

Chad Morganlander at Stifel Nicolaus is on the sidelines until he sees a committed fiscal thrust from China and renewed interest by the Fed to monetize debt.

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