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Commodity futures have erased their 2021 gains, sliding more than 20% from an eight-year high reached in May. Corn and wheat also tumbled, and the Bloomberg Grains Spot Subindex posted its largest drop since 2009 on Thursday before edging higher Friday.
A broad liquidation across grains and metals pressures feed input prices, though the sell-off reflects sentiment and fund flows more than a change in physical supply.
bloomberg.comYvonne Yue Li, Marvin G PerezJun 17, 2021Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
The commodity-wide unwind, with the Bloomberg Grains subindex posting its biggest drop since 2009, shows fund liquidation hitting wheat.
Commodity futures erased 2021 gains with grains posting the largest drop since 2009, indicating broad liquidation.
Broad commodity unwind and record grain-index drop show heavy fund liquidation, a sentiment channel that likely carried into the June 21 wheat decline.
