Worst month for commodities in 2 years

Agricultural , Commodities , Corn , Cotton , Energy , Metals , Soybaens Jul 31, 2014 No Comments

CommoditiesThe U.S. Department of Agriculture raised its estimates on global stockpiles for cotton, corn, soybeans last month, signaling a growing glut. Bigger crops are helping to keep food inflation in check, with the United Nations reporting a third monthly drop for prices in June.

Supplies are swelling at a time when the World Bank has cut its outlook for global expansion, signaling weaker demand for grains, metals and energy.

The Bloomberg Commodity Index (BCOM) fell as much as 0.1 percent to 127.82 yesterday, the lowest level since February, and was at 127.83 at 10:53 a.m. in Singapore. Money mangers cut their combined net-long position across 18 U.S. raw materials 9.5 percent to 904,787 contracts in the week to July 22, government data show. Holdings slid for four straight weeks.

“A lot of the commodities seem to be well-supplied,” Fain Shaffer, the president of Infinity Trading Corp. in Indianapolis, said in a telephone interview yesterday. “The weather has been favorable for grains. We’re seeing a major sell-off in a lot of commodities this month.”

Cotton futures tumbled 14 percent in July, the third straight decline and the longest slump since July 2011. Corn plunged 14 percent in July, the most since September 2011.

Via Commodities Cap Biggest Monthly Decline Since May 2012

Pascal Blanc

Pascal has implemented numerous software solutions in the areas of procurement, sourcing, spend management, supplier evaluation and performance. His clients include Fortune 500 companies in Europe, Asia and North America. He is a co-founder of Source & Procure.

Leave a Reply

Your email address will not be published. Required fields are marked *