Food commodities like corn, soybean, and wheat have collapsed recently, entering bear market territory as more than 20% was shaved off their recent peaks.

Dennis Sweeney, CEO of Infinity Brokerage said the, “talk across all commodity assets is demand destruction. I believe funds are worried about a recession.”

Prices of these commodities were skyrocketing earlier in the year as Russia’s invasion of Ukraine threatened to create mass shortages. But now they are coming back to earth, as investors are seeing previous fears are failing to materialize.

Wheat is presently down 30% from its highs in March. Meanwhile, Corn and soybeans have lost all of their 2022 gains so far this year.

Sweeney said, “Bids were scarce as funds tried to exit the last couple of weeks.”

Also driving prices down is the recent plunges in WTI crude and Brent crude, as investors have always noted energy and agricultural commodities tend to travel in tandem in the market.

In addition, as the Fed moves to tame inflation, that is strengthening the dollar which will also work to drive down the cost of commodities comparitively.