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Winter wheat futures fell to their lowest level in a decade and made new lows, weighing on corn and soybeans. Commodity markets also faced pressure from a stronger US dollar after Federal Reserve officials appeared to signal another small rate hike later in the year.
The greenback was gaining ground again.
A stronger dollar on expected Fed tightening lowers US grain prices in global terms and encourages selling across grains. Wheat weakness continues to pull feed grain prices lower.
farmprogress.comAug 29, 2016After 69 past bearish macro events, Wheat (SRW) moved a median -0.5% over 5 sessions (35% higher; middle half -2.6% to +0.8%), and -0.7% over 20.
After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 273 past bearish macro events, Soybeans moved a median -0.4% over 5 sessions (44% higher; middle half -2.4% to +1.4%), and -0.5% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
