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US grain futures rallied sharply overnight, with July corn hitting a near 12-month high and wheat a three-month high. Soybeans reached a five-week high after gaining over 50 cents in two days.
Weekly USDA data showed corn planting at 58% and soybeans at 29%, both behind expectations and well below five-year averages.
Wet Midwest weather delaying planting raises the risk of reduced acreage and yields, which supports corn, soybean and wheat prices. Analysts warn such weather-driven rallies can peak quickly.
thepigsite.comEmily HoughtonMay 29, 2019After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 322 past bullish weather events, Wheat (HRW) moved a median -0.1% over 5 sessions (49% higher; middle half -2.5% to +3.2%), and +1.0% 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.
Dated the same day as the move, it reports a sharp grain rally with wheat at a three-month high on planting delays, which fits a 5.68% one-day HRW jump via supply and sentiment spillover from corn.
Dated 2019-05-29, it reports a sharp grain futures rally with wheat at a three-month high on planting delays, matching the timing and size of the 5-day move.
