Friday, August 10, 2012

Drought drives investors back to grain funds




Reuters reports that investors who had fled agricultural commodity funds for more than a year rushed back in droves last month as the worst U.S. drought in more than half a century caused prices to surge, data from fund tracker Lipper showed on Friday.

Exchange-traded funds and other security products that track agriculture-focused futures or indexes recorded an inflow of just below $110 million in July, the highest since March 2011, according to the data. Flows turned positive in June, ending a 14-month streak in which investors slashed bets by billions….


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