Swelling Global Grain Glut Spurs Largest Bearish Bet Since June
- Net-short wager in corn, wheat, soybeans jump almost ten times
- USDA forecasts record global crop inventories as prices drop
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Overflowing grain bins prompted money managers to expand their wagers on lower crop prices by almost ten times in the space of a week.
Global inventories of corn, wheat and soybeans will each rise to all-time highs before next year’s North American harvests, the U.S. government forecasts. While grain prices have already dropped to five-year lows, hedge funds are predicting more losses as stockpiles expand. The funds are holding the biggest bearish bet on the crops since June.