SINGAPORE (Reuters) -Global commodity markets ended 2020 on a strong note, with recovering demand and widespread stimulus packages buoying prices after a roller coaster ride caused by the global coronavirus pandemic. Rollouts of vaccines to combat the virus and trillions of dollars' in fiscal support are expected to boost investment and spending in 2021, spurring demand for raw materials from oil to copper. "It's been a tumultuous year for the commodity market, as the oil meltdown in March changed how we measure and gauge risk in the entire commodity sphere," Stephen Innes, chief global market strategist at brokerage Axi, told Reuters.
This summary highlights positions and changes made by speculators such as hedge funds and CTA’s across commodities, forex, bonds and stock index futures and options up until last Tuesday, December 8. A week where vaccine and stimulus optimism continue to propel stock markets higher and the dollar lower. The commodity sector meanwhile look set to finish the year with an elevated cross-sector long as speculators look for further gains in 2021.
MassMutual's push into bitcoin shows increasing adoption – of the narrative the cryptocurrency can work as a hedge against central-bank money printing.