Hedge funds cut bullish wagers on soybeans as forecasts for record global inventories sparked the biggest price slump in more than six months.
U.S. farmers will reap their biggest-ever harvest and domestic stockpiles last month were the highest since 2006, government data show. That’s adding to a global glut that will swell global inventories to an all-time high and money managers are now the least bullish on prices since October.
Surging supplies of grain, crude oil and metals drove the Bloomberg Commodity Index (BCOM) of 22 raw materials to a 12-year low last week. Ample supply is keeping global food costs in check, with a gauge of world prices tracked by the United Nations reaching a four-year low last month.
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