Bull positions tumble most in 16 weeks as prices slump

Oil Wagers

Investors reduced bets on a crude-oil rally by 17 percent to 177,762 contracts, the biggest decline since May 8, the CFTC data show. Prices declined 0.8 percent in New York last week, the second straight drop and the longest slump since mid-June.

A measure of net-longs for 11 U.S. farm goods fell 6.3 percent to 725,687 contracts, the CFTC data show. That’s the third weekly decrease and the longest slide since April.

Soybean holdings dropped 6.9 percent to 195,402, the lowest since June 5. Cotton wagers fell 51 percent to 6,356. Prices in New York fell for a fourth week, the longest losing streak since June, amid concern that demand from China will slow.

“We’re going to see a move back down in the entire risk- asset complex and the commodity complex,” said Stanley Crouch, who helps oversee $2 billion as chief investment officer at New York-based Aegis Capital Corp. “You’ve got clear signs of some very fundamental issues with the macroeconomic situation.”

Bloomberg News

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