An exodus of hedge funds and other speculators from commodity markets has exacerbated price falls for wheat, corn, soybeans and other staples, which some analysts say are now cheaper than supply and demand warrant.
It’s a sharp reversal from earlier this year when money managers, worried about inflation and war-related supply problems, helped push commodity prices higher by betting on rising prices in the futures markets. Wheat and soybeans hit record prices earlier this year and corn soared near all-time highs, but since then speculators have exited agricultural markets, taking profits, buying into inflationary deals and bracing for a recession.
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