Bearish Agriculture Options Bets Surge to Two-Year High
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Investors are making the most bearish bets against crops and livestock in the U.S. equity-options market since 2008 after the World Bank said prices surged to dangerous levels.
The number of outstanding puts to sell the PowerShares DB Agriculture Fund, which tracks 11 commodities from corn to soybeans and cattle, versus calls to buy has increased to 0.67 and reached a 28-month high of 0.69 on Feb. 28. The ratio doubled in January and February, the fastest two-month rate since February 2008, according to data compiled by Bloomberg.