Speculators boost bullish positions most since November

Palladium Outlook

Palladium will be the best performer in 2013 among precious metals as supplies tighten and demand increases from China, Barclays analysts led by Suki Cooper in New York, said in a report Jan. 17. Energy and industrial metals also will rise this year, according to Barclays.

A measure of net-longs for 11 U.S. farm goods advanced 4% to 341,527 contracts, the first increase in six weeks, the CFTC data show. The S&P GSCI Agriculture Index of eight commodities jumped 2.8% last week, the most since July.

Soybean holdings climbed 8.4% to 79,436 contracts, the biggest gain since Dec. 11. Futures in Chicago reached a four-week high on Jan. 17 after the U.S. reported the biggest jump in export sales in more than two years.

Sales in the week ended Jan. 10 jumped to 1.61 million metric tons, the most since October 2010 and up from 321,800 a week earlier, the U.S. Department of Agriculture said. The purchases included 845,600 by China, the top consumer.

“The outlook for world economic growth has improved,” said John Kinsey, who helps manage about C$1 billion (US$1.01 billion) of assets at Caldwell Securities Ltd. in Toronto. “China’s such a big factor because they’re the largest importer of almost any commodity. There’s a new regime in Japan, and Europe seems to have its act together. Global economies are looking better than they have in some time.”

Bloomberg News

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