Analysts expect commodity collapse to continue

Chicago

THE commodity meltdown that pushed oil to a 12-year low and copper to the cheapest since 2009 is not over yet. At least, that is how hedge funds see it.

Money managers increased their combined net bearish position across 18 raw materials to the biggest ever, doubling the negative bets in just two weeks. A measure of returns on commodities last week slid to the lowest in at least 25 years. Metals, crops and energy futures all slumped amid supply gluts and an anaemic outlook for the global economy.

Market turmoil in China, the biggest commodity buyer, is adding to worries over consumption. A stronger US dollar is also eroding the appeal of raw materials a…