The Bloomberg Grains Sub-Index has reached a nine-year low thanks to concerns that a global supply glut will expand while a slump in equities dragged commodities lower.
Bloomberg reports that its index fell 2.1 percent recently to 38.7, the lowest level since September of 2006.
Beneficial rains have boosted prospects for crops in Brazil, and Argentina exporters are increasing shipments, partly after the government relaxed tariffs, contributing to the recent index drop.
Meanwhile, world equities had the biggest drop to start to a year in at least three decades, led by a rout in China.
Trading in equities in China, the world’s largest purchaser of soybeans, was halted after a 7 percent plunge.
