Speculators place bullish bets on agricultural commodities, hit highest level since May as bad weather reduces corn, soybean yield prospects in U.S.
August 29, 2011
– Speculators are placing bullish bets on agricultural commodities, hitting the highest level since early May, as bad weather reduced yield prospects for corn and soybean crops in the U.S., Bloomberg reported Aug. 29.
Hedge funds and other speculators increased their net-long positions 15% to 776,774 contracts across 11 agricultural futures and options in the week through Aug. 23, the highest since May 6, according to government data collected by Bloomberg. For the first time since June, funds became bullish on wheat and bets that soybeans will rise jumped 64%.
Investors will continue to put money into corn and beans until there is a clearer picture surrounding crop sizes, according to Northstar Commodity Investment Co. market analyst Chris Nagel said.
In Iowa and Illinois, the hottest summer since 1955 could lead to lower yields for corn and the worst crop conditions since the 1930s are putting stress on domestic cotton supplies.
The primary source of this article is Bloomberg, New York, New York, on Aug. 29, 2011.