Investor enthusiasm for agricultural commodities waned further over the lastmonth. Indeed, for eight of the commodities we cover and have Commitment ofTraders data, five saw a fall in net-long non-commercial positions. Moreover,the total number of net-long positions for all eight commodities has fallen to thelowest level since mid-October last year. While a number of commodity pricescontinue to be weighed on by ample supplies, the persistent strength of the USdollar is also playing a part. Indeed, on a trade-weighted basis, the US dollar iscurrently at an 11-year high, increasing the cost of agricultural commodities inother currencies. At the same time, the S&P GSCI Agriculture Index has fallen toclose to its lowest level since mid-2010.
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