Commodity markets face hedging activity boost

Hedge funds - hedging their energy bets

With commodity prices still relatively low compared to the highs of 2008, but widely expected to edge higher in coming months, conditions seem ripe for increased hedging activity. However, traders and analysts say that while there has been some pick-up in hedging, it has not been across all sectors and many clients have decided to pull back from rushing into hedging all their exposure.

“While we’ve seen some opportunistic hedging, I still think some names have held back a little due to uncertain

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