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Chicago corn, soybean and wheat futures fell about 2% on Monday as global markets sold off over coronavirus economic fears. Wheat hit its lowest in almost four months and soybeans reached their lowest since late February.
Oil plunged more than 20% after Saudi Arabia cut its official selling price.
Lower crude prices reduce demand expectations for biofuel feedstocks like corn and soyoil, and broad commodity liquidation pressures grain prices further. Soymeal and feed-grain costs for buyers face downward pressure in the near term.
financialpost.comReutersMar 9, 2020After 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 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 40 past bearish macro events, Soybean Oil moved a median -0.8% over 5 sessions (45% higher; middle half -4.5% to +1.7%), and -1.5% 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.
Soybeans fell about 2% on global risk-off selling over coronavirus fears and an oil price crash, a sentiment and cross-commodity shock that matches the size and timing of the move.
CBOT oilseeds fell on March 9 amid the global selloff and the oil plunge, showing sentiment-driven pressure on soy complex prices.
