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Kalkine Media reports that the US and China are easing trade tensions, with China removing tariffs on pork and soybean products and the US reciprocating with tariff reductions. The article also says falling interest rates, weaker global currencies and dovish central banks are supporting commodity prices and equity markets.
Lower tariffs on US soybeans and pork should support export demand for soybeans and corn, while a weaker dollar supports dollar-priced commodities. The trade thaw is the main driver of the rally.
kalkinemedia.comDec 23, 2019After 696 past bullish trade events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.3% to +1.9%), and +0.7% over 20.
After 729 past bullish trade events, Corn moved a median +0.4% over 5 sessions (56% higher; middle half -1.1% to +1.8%), and +0.5% over 20.
After 39 past bearish trade events, US Dollar (Broad) moved a median -0.4% over 5 sessions (26% higher; middle half -1.1% to +0.0%), and -0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
