02.03.2015 - Hedge Funds Flee Coffee at Fastest Pace in a Year: Commodities
It’s raining in Brazil, and the coffee bulls are running for cover. Downpours in the past month mean moisture levels are adequate in most growing areas, replenishing soil left parched by a drought in 2014, according to MDA Weather Services. The rains in the top coffee producer and exporter spurred hedge funds to cut their bullish wagers by the most in a year. Coffee swung from a bear market to a bull market and back again over the past year, making it the most volatile component of the Bloomberg Commodity Index. After 2014’s dry spell caused prices to double, futures retreated for a sixth consecutive month in February. Global stockpiles at the end of September will be 14 percent higher than previously estimated, the U.S. government said in its most recent outlook...............................................Full Article: Source
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