Funds add Bullish agriculture bets on shortages

Funds increased Bullish bets on agricultural commodities by the most in more than a year on signs of tightening supplies amid adverse weather conditions.

In the week ended August 30, speculators raised their net-Long positions in 11 commodities by 18% to 915,341 futures and options contracts, government data show, the biggest gain since August 3, 2010.

Holdings in Wheat more than tripled, Bullish Corn bets reached an 11-week high, and Coybean positions rose to the highest since November 2010.

Corn prices have risen 70% in the past year and Soybean has gained 43%. The hottest July since Y 1955 means that U.S. production of both crops may miss government estimates, according to researcher and broker INTL FCStone Inc.

The costliest drought in Texas history has hampered US supplies of Cotton, while dry weather in the US Great Plains may curb planting of winter Wheat.

Paul A. Ebeling, Jnr.

 

 

Paul A. Ebeling, Jnr

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.