Commodities markets were volatile at the end of last and start of this year and the agricultural sector was no different
After a bad drought in 2012, which caused
supply shortages and the prices of corn and soybeans to rise to
all-time highs, prices for wheats, soybeans and oil seeds such
as rapeseed and canola saw multi-year lows until prices began
to rally in the last few months. Funds are taking long
positions in soybeans, which has driven the prices up $2.32 in
roughly a six-week period, a few weeks after a short-lived
rally in wheat futures prices.
Out of the five most traded agricultural
futures, two saw their volumes rise with double digits in the
last month, while two others saw double digit drops, according
to Euromoney TradeData.
Several exchanges reported strong results
in their agricultural products for the last few months. The
Intercontinental Exchange (ICE) had a strong trading month in
April as increased activity in commodities more than wiped
out losses in its equities segment. Commodity derivative
volumes at the exchange was up, with a 15.8% uptick in
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