Salient to Investors:
Speculators lowered bullish bets on commodities for the third straight week, the longest streak since April. Copper holdings fell the most in seven weeks, and sugar wagers dropped to a one-month low. Bullish bets on gold slumped the most in three months.
Donald Selkin at National Securities Corp said the liquidating in commodities is related to the perceived global economic slowdown – people are exiting the more economically sensitive commodities.
Anthony Valeri at LPL Financial said commodity prices may be bolstered as central banks do more to revive growth – additional quantitative easing is still on the table, not just from the Fed.
Brad Durham at EPFR Global said money managers added $648.5 million to commodity funds last week, including $620.1 million into gold and precious metal funds.
Bill Gross at Pimco said structural headwinds, the budget deficit and the fiscal cliff will dominate the economic debate no matter who wins the election and that means lower growth.
Christine Lagarde at the IMF said the US may tumble into a recession next year if Congress fails to avert the fiscal cliff.
Nelson Louie at Credit Suisse Asset Mgmt said the recent selloff in commodities reflects concerns of slower growth.