Gold miners' outstanding forward sales jump 61 pct in Q2 -report
* Russia's Polyus Gold accounts for jump in Q2 hedging
* Forward sales will rise by net 40 T in 2014-report
LONDON Oct 22 (Reuters) - The volume of gold sold forward by mining companies jumped 61 percent in the second quarter after Russia's Polyus Gold added a major new hedge position, an industry report showed on Wednesday.
In their quarterly Global Hedge Book Analysis, released on Wednesday, Societe Generale and GFMS analysts at Thomson Reuters said they are predicting net hedging for the year of 40 tonnes, the most since 1999.
They forecast in July that gold producers would return to net hedging this year for the first time since 2011.
Volumes of hedging predicted for this year are still well below the levels seen in the late 1990s. Net producer hedging in 1999 reached 506 tonnes, according to GFMS data.
Hedging, or selling future gold production, allows miners of the metal to lock in prices for their output.
While it can protect producers when prices are falling, the practice can also stop them capitalising on a rising market, making it hugely unpopular during the decade-long bull run in gold that began in 2001.
GFMS and Societe Generale estimated in Wednesday's report that only around 1 percent of total global gold production to 2018 is covered by hedge structures over the same period. Continuación...