A measure of speculative positions across 11 agricultural products slid 1.1 percent to 283,025 contracts, the CFTC data show. Investors trimmed their bearish positions in corn and wheat and got more bullish on soybeans.
U.S. corn and soybean inventories before the 2014 harvests will be smaller than the government predicted in November after overseas demand for crops improved, according to a survey of as many as 31 analysts and trading firms by Bloomberg News. Wheat reserves may also fall.
The net-long position in cocoa climbed 1.7 percent to 78,881 futures and options, the highest in four weeks. Prices in New York jumped 25 percent this year, heading for the biggest annual rally since 2008 as dry weather threatened crops in Ivory Coast and Ghana, the top producers. Stockpiles at facilities tracked by ICE Futures U.S. have fallen 10 percent this year to the lowest since June 2011.
“Next year should be a better year, economically speaking, than 2013,” said John Kinsey, who helps manage about C$1 billion at Caldwell Securities Ltd. in Toronto. “Most of the materials, whether they’re precious metals, or base metals, have been beaten up pretty badly. Any sign of recovery would be a good thing for commodities.”