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Lack of Longer-Term Investors Imperils Crop Markets

According to J.P. Morgan, even as yields climbed, investors exited

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The rise in algorithmic trading and the U.S.-China trade dispute have combined to hurt crop growers, according to a J.P. Morgan Research study published Tuesday.

According to Bloomberg, even as yields climbed over the past decade, some longer-term investors exited agricultural markets, Tracey Allen, agricultural commodities strategist at J.P. Morgan Chase & Co. in London, said in the study.

That dynamic was illustrated when the U.S.-China trade dispute worsened earlier this year, sending the Bloomberg index of grain returns to a 42-year low. But a historic patch of wet weather that stalled plantings in the U.S. has helped bring the market back to its fundamentals.

Read the full report at Bloomberg.

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