Speculators Reduce Wagers as Annual Advance Erased: Commodities

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Speculators lowered bullish wagers on commodities for the third straight week, the longest streak since April, as prices erased this year’s gain on mounting concern about slowing economic growth.Hedge funds cut net-long positions across 18 U.S. futures and options by 0.2 percent to 1.18 million contracts in the week ended Oct. 23, the lowest since July 24, U.S. Commodity Futures Trading Commission data show. Copper holdings fell the most in seven weeks, and sugar wagers dropped to a one-month low. Bullish bets on gold slumped the most in three months.Enlarge imageInvestors increased their net-short position in coffee by 23 percent to 16,060 contracts, the most bearish since Sept. 11. Photographer: Dhiraj Singh/BloombergThe Standard & Poor’s GSCI Spot Index of 24 raw materials dropped to a 12-week low Oct. 26, two days after the Federal Reserve said that the strains in the global economy present “significant downside risks.” Services and manufacturing in the 17-nation euro area contracted more than economists forecast, and orders for U.S. capital goods stalled.“The fact that there’s been liquidating in commodities is related to the perception of the global economic slowdown,” saidDonald Selkin, the New York-based chief market strategist at National Securities Corp., which manages about $3 billion of assets. “People are getting out of more economically sensitive types of commodities.”

Falling prices

The S&P GSCI fell 2.6 percent last week, the most in a month, and the MSCI All-Country World Index of equities retreated 1.6 percent. The dollar added 0.6 percent against a basket of six major trading partners. Treasuries returned 0.1 percent, a Bank of America Corp. index shows.Twenty-one of the 24 commodities tracked by S&P dropped as the number of contractsoutstanding across the group contracted for the first time in four weeks. Copper declined 2.4 percent, the biggest loss since July 6, and gold fell for a third week, the longest losing streak since September 2011.Orders for U.S. business equipment stagnated in September, capping a quarterly slump that signals investment may cool in the second half of the year, the Commerce Department said Oct. 25. Americans signed fewer contracts than forecast last month to purchase previously owned homes, figures from the National Association of Realtors showed the same day.In the third quarter, South Korea’s economy grew at the slowest pace in three years, while Spain’s unemployment rate climbed to a record, reports showed Oct. 26. There are doubts about whether Greece will be able to meet requirements for its European bailout, German Finance Minister Wolfgang Schaeuble said in an e-mail release of an interview to be broadcast Oct. 30 on ZDF television.

Easing Measures

http://www.bloomberg.com/news/2012-10-28/speculators-reduce-wagers-as-annual-advance-erased-commodities.html

America's near poor: 30 million and struggling

By Tami Luhby @CNNMoney October 24, 2012: 12:31 PM ETMore than 30 million Americans are living just above the poverty line. These near poor are often defined as having incomes of up to 1.5 times the poverty threshold.NEW YORK (CNNMoney) -- They aren't in poverty, but they are just a step away from falling into its clutches.More than 30 million Americans are living just above the poverty line. These near poor, often defined as having incomes of up to 1.5 times the poverty threshold, were supporting a family of four on no more than $34,500 last year.Obama's economyA look at where the economy stood when Obama took office and what's changed since.View PhotosThey are more likely to be white than those in poverty, according to a CNNMoney analysis of Census Bureau data. They are more likely to be elderly. They are more than three times as likely to work full-time, year-round. And they are more likely not to receive help from the government."People just above the poverty line are just one paycheck or health disaster away from poverty," said Katherine Newman, a dean at Johns Hopkins University. "They are still quite fragile."The near poor have grown by about 10% in number over the past five years, as the Great Recession sent many people falling down the income ladder. The ranks of those in poverty, on the other hand, swelled 24% in the same period.Half of the near poor are white, compared to just over two in five of those in poverty, according to Census figures. And only 16.7% are black, compared to 23.6% of those in poverty. The share of Latinos who are near poor is 27.8%, only slightly smaller than the share in poverty.The fact that there are more blacks in poverty than among the near poor likely stems from the fact that the unemployment rate among blacks is nearly double that of whites, said Robert Moffitt, professor of economics at Johns Hopkins. And they have much higher rates of single motherhood, he said. Whites, on the other hand, likely have enough earnings to put them just above the poverty line.Related: More than 20 million saved from povertyhttp://www.blogger.com/blogger.g?blogID=6138796855686546909#editor/target=post;postID=1962821317887483059

Government wants more people on food stamps

By Tami Luhby @CNNMoney June 25, 2012: 5:17 AM ETThe federal government is running radio ads to boost enrollment in food stamps.NEW YORK (CNNMoney) -- More than one in seven Americans are on food stamps, but the federal government wants even more people to sign up for the safety net program.The U.S. Department of Agriculture has been running radio ads for the past four months encouraging those eligible to enroll. The campaign is targeted at the elderly, working poor, the unemployed and Hispanics.Obama's economyHere's a look at where the economy stood when the president took office in 2009, and what's changed since.ViewThe department is spending between $2.5 million and $3 million on paid spots, and free public service announcements are also airing. The campaign can be heard in California, Texas, North Carolina, South Carolina, Ohio, and the New York metro area."Research has shown that many people -- particularly underserved seniors, working poor, and legal immigrants -- do not understand the requirements of the program," said Kevin Concannon, a USDA under secretary.The radio ads, which run through June 30, come amid a bitter partisan fight over the safety net program. Republican lawmakers want to reduce funding for the benefit or turn it into a block grant program, which would also minimize the cost. Democrats, however, are not willing to make major cuts.The issue has become so heated that Newt Gingrich called President Obama the "food stamp president" to show how he's increased government spending.Food stamp enrollment certainly shot up during the Great Recession, though it had been rising for more than a decade.President Bush launched a recruitment campaign, which pushed average participation up by 63% during his eight years in office. The USDA began airing paid radio spots in 2004.President Obama's stimulus act made it easier for childless, jobless adults to qualify for the program and increased the monthly benefit by about 15% through 2013.Getting off government assistancehttp://money.cnn.com/2012/06/25/news/economy/food-stamps-ads/index.htm?iid=EL