Funds reduced bullish bets on commodity prices to the lowest level in almost a year on speculation that slowing global growth will curb demand for metals, energy and grains. Speculators cut their net-long positions in 18 U.S. commodities by 15 percent to 958,309 futures and options contracts in the week ended June 28, government data compiled by Bloomberg show. That’s the lowest since the week ended July 13 last year. Declines were led by a 67 percent drop in holdings of soybean meal. Investors trimmed bets on silver by 26 percent, the most since May 2010. The Standard & Poor’s GSCI Index of 24 raw materials slumped 7.8 percent last quarter, the biggest such loss since 2008. China’s non-manufacturing industries expanded at the slowest pace in four months in June, adding to concerns that efforts to tame inflation are curbing growth in the world’s second-biggest economy and largest consumer of commodities. “You have slower imports and economic growth from China and other regions of the world, and then you have the threat of rising interest rates,” said Luis Rangel, a vice president at ICAP Futures LLC in Jersey City, New Jersey, who cited the end of quantitative easing, or QE2. “Those are the underlying factors that are slowing the commodity trend.” Gold for August delivery advanced 0.7 percent to $1,493.5 an ounce in New York today, rallying from a two weekly declines. Copper for September delivery added as much as 0.7 percent to $4.334 a pound, the highest level for the most active contract since April 27, and traded at $4.3215 a pound on optimism China may refrain for further tightening as its economy slows and after an unexpected increase in U.S. manufacturing. A measure of net-long positions in 11 U.S. farm goods tumbled 10 percent to 604,091 contracts, the lowest since July 2010. Corn futures in Chicago dropped as much as 7.3 percent to $5.755 a bushel on Friday, the lowest level for the most active contract since December. The market is not trading today because of a U.S. holiday. To contact the reporter on this story: Elizabeth Campbell in Chicago at ecampbell14@bloomberg.net To contact the editor responsible for this story: Patrick McKiernan at pmckiernan@bloomberg.net

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