The 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.
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.”