Funds' Bearish Bets Outpace Bullish View

Sep 21, 2012 (Dow Jones) NEW YORK--Managed-money funds placed more bearish than bullish bets in Comex copper futures and options in the week ended Sep. 18, according to data released Friday by the Commodity Futures Trading Commission.

Speculative investors added 682 long positions, or bets on higher copper prices, and 1,027 short positions, or bets on lower prices, during the reporting period.

This reduced their net-long position by 2% to 17,164 contracts, from 17,509 a week earlier. The net position is the difference between the number of long and short contracts held by traders in the category. Changes in the net position are considered by many as an indication of shifts in market sentiment.

Importantly, the total number of positions held by traders in the managed-money fund category has increased in recent weeks--a sign that speculative appetite for the metal is growing.