Sentiment sinks further

Commodity prices continue to ebb and flow at the whim of movements in Chinese equity prices and concerns about a “hard landing” for the economy. Although agricultural prices don’t have the same level of correlation with the performance of the Chinese economy as industrial commodities prices, they aren’t immune from the general deterioration in sentiment. Indeed, investors have further reduced the number of long non-commercial positions in all of the main agricultural commodities over the last month.