US data showed that hedge funds reduced their positions by around $9bn (£7.4bn) to £90.7bn in the week ended April 10, which was the biggest fall in four months.
The latest figures from the US Commodity Futures Trading Commission (CFTC) showed money managers lowered net long positions across 24 US commodity futures including oil, precious metals, base metals and agricultural commodities such as cotton.
Commodity prices and demand are closely linked to the outlook for the Chinese economy, which is considered a barometer of future global demand given its fast-growing economy. However, the annual growth rate in China fell to 8.1pc in the first quarter of 2012, which was the slowest rate in three years, and lower than the 8.4pc growth forecast by economists. It compared with 8.9pc growth in the final quarter of 2011.
While growth in China remains strong in comparative terms, the World Bank's forecast for 8.2pc Chinese growth in 2012 would represent the slowest rate of growth since 1999.
Last month the Chinese government cuts its growth target to 7.5pc, which was the lowest since 2004.
Source: Hedge funds sell commodities amid China growth fears - Telegraph
