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September corn futures dropped about $0.48 and November soybean futures about $0.39 since the Monday open, as Midwest forecasts improved and talk of La Niña faded. Traders also cut long positions ahead of the UK referendum on leaving the European Union, and a Brexit vote was expected to strengthen the US dollar.
Better crop weather removes the weather premium from corn and soybeans, lowering prices. A stronger dollar from a Brexit outcome would make US grain exports less competitive abroad, adding further downward pressure.
news.utcrops.comDanny Morris, Ext Area SpecialistJun 23, 2016After 357 past bearish weather events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -2.2% to +1.3%), and -0.5% over 20.
After 363 past bearish weather events, Soybeans moved a median -0.6% over 5 sessions (42% higher; middle half -2.5% to +1.1%), and -0.2% over 20.
After 15 past bullish weather events, US Dollar (Broad) moved a median +0.1% over 5 sessions (53% higher; middle half -0.3% to +0.2%), and -0.6% 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.
