With supply and demand woes weighing heavily on agricultural pricing, hedge funds have upped their bearish bets on grain futures to the highest level seen since the early months of the pandemic, according to a report by Bloomberg.
The report cites data compiled by Bloomberg from the US Commodity Futures Trade Commission as revealing that the combined net-short position in corn, wheat and soybean contracts traded on the Chicago Board of Trade was the biggest since June 2020 in the week ended Tuesday.
The data shows a steep reversal in expectations after years in which disruptions caused by the Covid-19 pandemic, droughts and the war in Ukraine caused prices for vital food staples to skyrocket.
A Bloomberg gauge of near-term contracts for soybeans, corn and wheat has lost more than 23% this year after hitting a record high last year, with the decline helping to alleviate inflationary pressures.
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