Gold bears return before Yellen signals more easing

Net-long position slumped 37%

Crude Supplies

U.S. crude-oil stockpiles climbed for an eighth week as output expanded to the highest since January 1989, data from the Energy Information Administration showed. Horizontal drilling and hydraulic fracturing, or fracking, have unlocked supplies in shale formations in North Dakota, Texas and other states.

Speculators turned bearish on copper, with bets on price declines outnumbering wagers on gains by 8,117 contracts in futures and options. That’s the first time investors turned net- short since Sept. 17. Copper futures slumped 2.2 percent in New York last week, the biggest drop since late August.

A measure of speculative positions across 11 agricultural products was little changed at 362,838 contracts, up 0.1 percent from a week earlier, the CFTC data show. The S&P’s Agriculture Index of eight commodities tumbled 20 percent this year.

Money managers held a net-short position in wheat of 47,251 contracts, compared with 19,535 a week earlier. Investors have been betting on price declines for corn since June, and are also bearish on coffee and soybean oil. Cotton holdings fell to the lowest since December and cocoa wagers fell last week for the first time since July.

Record Crops

U.S. farmers will collect a record harvest of 13.989 billion bushels of corn this year, the Department of Agriculture said on Nov. 8. Global coffee output will exceed consumption for a fourth season in 2014, the longest glut in 11 years, the USDA estimates.

“The fundamental issue of oversupply for several commodities is a reality,” said Rob Haworth, a senior investment strategist in Seattle at U.S. Bank Wealth Management, which oversees about $110 billion of assets. “We saw some temporary interest come intocommodities because of Yellen, but we don’t think the story has changed. The Fed will have to slow the stimulus at some point.”

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