Goldman Says Money Pours Into Agriculture Fastest in Four Yearsby
Goldman’s Dewell says money flow seen continuing all year
Bloomberg Agriculture Subindex has been climbing since March
Investors are flocking to agricultural commodities at the fastest pace since the 2012 drought, Goldman Sachs Group Inc. said.
Money managers have gone from a net short position of about $10 billion earlier this year to long wagers of $25 billion, Goldman analysts and traders, including Anthony Dewell, a managing director in New York, said Tuesday in a webcast presentation.
“That $35 billion inflow was even faster and larger in scale than the buying the market saw during the 2012 drought,” Dewell said.
Dewell said the shift accelerated in April and that the investment bank expects the flow of money into agricultural commodities, including corn, soybeans and soybean oil, to persist through the rest of 2016.
The Bloomberg Agriculture Subindex has increased 18 percent since this year’s low in March.