Corn CZ F soybeans ZS F and wheat ZW F have tumbled over the last couple of weeks. Agricultural commodity futures are in bear market territory, more than 20% off their peak earlier this year.
Dennis Sweeney, CEO of Infinity Brokerage, told Yahoo Finance that the talk across all commodity assets is about demand destruction. I think the funds are worried about a recession. Russia invaded Ukraine earlier this year, and Agricultural commodities skyrocketed. Supply concerns drove prices to record highs.
Wheat futures are off more than 30% from their March highs. Corn and soybean futures gave up all their 2022 gains.
Bids were scarce as funds tried to exit the last couple of weeks, said Sweeney.
Agricultural commodities are weighing on the price of WTI CL F and Brent BZ F crude as they tend to move in tandem with energy prices.
The rising dollar is at a multi-decade high and contributes to a decrease in agricultural commodity prices.
Ines is a stock market reporter for Yahoo Finance. Follow her on Twitter at ines ferre.