Salient to Investors:
Hedge funds cut bullish commodity bets to the lowest since July 24 on speculation China and Europe aren’t doing enough to boost growth. Gold bets fell 7 percent, silver fell 5.8 percent.
Bill Greiner at Mariner Wealth Advisors said global growth weakening, China growth is pretty weak.
Barclays said China consumes 42 percent of the world’s copper, Europe 18 percent.
Jeffrey Sica at SICA Wealth Mgmt is bullish long-term, saying an improving US outlook and resilient global demand for raw materials will boost prices in the long-term – we still see an exorbitant amount of demand for commodities.
Cameron Brandt at EPFR Global said money managers added $90 million to commodity funds in the week ended Oct. 17, gold and precious metal funds lost $158 million, snapping 11 consecutive weeks of inflows.
Pengjiang Fu at Newedge Group said metals demand in China is really slow as economic growth cools – slack demand for raw materials from China may last 18 months.
Informa Economics said planting of corn, soybean and wheat in the US will increase in 2013.
Adrian Day at Adrian Day Asset Mgmt said China is still slowing, and Europe has made a lot of noise but little action. Day said there’s nothing to keep the strong rally going.