Funds Set New Bearish Benchmark for Grains, Oilseeds
Global supplies continue to expand in absence of any serious threats to crops
Speculators reached record levels of bearishness in Chicago-traded grain and oilseeds last week as global supplies continue to expand in the absence of any serious threats to crops on the horizon.
Reuters reports that commodity funds were net sellers across the board last week and they have not changed their minds in the days since.
Traditionally, investors are unlikely to turn too pessimistic on grains and oilseeds heading into U.S. corn and soybean growing season.
But the extreme short position holds much lower risk than usual for commodity funds, particularly in corn, because the producers’ bins are still stuffed with the yellow grain.
Read the full report at Reuters.