It’s Not Easy Being Grains When Investors Bet on Price Demise
- Measure of combined soy, corn, wheat holdings turns negative
- July rains boost U.S. harvest outlook, adding to excess supply
Wheat stands in a field in Kirkland, Illinois, U.S., on Monday, July 11, 2016. The U.S. Department of Agriculture (USDA) is scheduled to release farm prices data on July 29.
Photographer: Daniel Acker/BloombergThis article is for subscribers only.
Investors have turned against three of the largest U.S. crops, betting that timely rainfall will further swell grain supplies and exacerbate price drops.
Hedge funds and other money managers are now holding a record wager on further declines for wheat, have increased their bearish outlook on corn and dumped bets on a soybean rally for a seventh straight week. A combined measure on the big three U.S. crops turned negative last week for the first time in three months.