Investors continue to reduce long bets on agriculturals

Investor enthusiasm for agricultural commodities waned further over the lastmonth. Indeed, for eight of the commodities we cover and have Commitment ofTraders data, five saw a fall in net-long non-commercial positions. Moreover,the total number of net-long positions for all eight commodities has fallen to thelowest level since mid-October last year. While a number of commodity pricescontinue to be weighed on by ample supplies, the persistent strength of the USdollar is also playing a part. Indeed, on a trade-weighted basis, the US dollar iscurrently at an 11-year high, increasing the cost of agricultural commodities inother currencies. At the same time, the S&P GSCI Agriculture Index has fallen toclose to its lowest level since mid-2010.