Hedge funds' bullish bets on commodities at six-week high

The net long money held by hedge funds and other big speculators in commodities is back to a six-week high, moving on from April's market tumble, as traders piled into oil and oversold crops like coffee, cocoa and corn, trade data showed on Friday.

But hedge funds are not bullish on all commodities, sharply paring their bets on soybeans and natural gas for the week ended Tuesday amid expectations of a bumper soy crop and warmer US weather that reduces the need for gas-driven heating.

They also cut their exposure to gold as the outlook for precious metal remained fragile after the mid-April sell-off.

The net long money held by money managers across 22 US-traded commodities rose by about USD 1.4 billion, or 2 percent, to around USD 63 billion for the week ended May 7, according to Reuters calculations of data released by the Commodity Futures Trading Commission (CFTC).

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It had fallen to around USD 53 billion two weeks earlier- the lowest since December 2011- after April's broad commodities sell-off that was triggered by worries of a slowdown in China growth, more trouble in euro zone debt and uncertainty about US stimulus.

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