by Tiho Brkan, The Short Side of Long
Chart Of The Day: Funds hold cumulative short bets against Agriculture
Source: Short Side Of Long
Today's chart of the day focuses on commodities, in particular agricultural commodities and the businesses behind them. Last post was a video from The Economist showing the effects El Nino could have on commodity prices. While we do not know whether or not El Nino will once again occur this year (it failed to arrive last year), one thing is for sure: hedge funds believe agricultural commodities stand no chance of rising.
And they have pressed bets to match their loathing, bearish opinion. My own personal agricultural COT indicator is showing extremely negative sentiment for the last month, with cumulative bets in the net short position for the first time in over a decade.
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