# Brazil Forecasts Push Grain Markets Higher | Tuesday, December 26, 2023

> Corn, soybeans and wheat rallied at the close on December 26, 2023 after forecasts showed hot, dry conditions persisting in central and northern Brazil. Corn closed up 4 cents, January soybeans up 2 cents, and wheat 6 to 13 cents higher. Livestock futures also closed higher, with February hogs up $1.42.

- Date: 2023-12-26 · published 2023-12-26T12:00:00.000Z
- Category: weather · region Brazil · magnitude low
- Page: https://feedsoft.ai/events/11280-brazil-forecasts-push-grain-markets-higher-tuesday-december-26-2023
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Dryness in Brazil threatens its safrinha corn and soybean crops, which supports prices for US exports and feed ingredients. Traders are pricing in the risk of smaller South American supplies.

## Read by commodity

- SBM: bullish ▲
- SOY: bullish ▲
- CORN: bullish ▲
- WHEAT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| CORN | 2023-12-25 | 1 | +2.8% | 3.2 | Dec 26 rally in corn on forecasts of persistent hot, dry weather in central and northern Brazil raised supply risk for the safrinha crop and drove buying. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2022-01-17 | [Brazil’s Drought Reduces Grain Harvest Forecasts](https://feedsoft.ai/events/13749-brazil-s-drought-reduces-grain-harvest-forecasts.md) | -0.5% | +6.0% |
| CORN | 2020-10-05 | [Grain Markets Start the Week Higher - ProAg](https://feedsoft.ai/events/11633-grain-markets-start-the-week-higher-proag.md) | +0.6% | +5.8% |
| CORN | 2017-08-02 | [Markets firm after Tuesday’s breakdown](https://feedsoft.ai/events/12266-markets-firm-after-tuesday-s-breakdown.md) | +1.2% | -7.4% |
| CORN | 2019-05-22 | [Afternoon Market Recap for May 24, 2019 - HighLine Grain Growers, Inc](https://feedsoft.ai/events/5437-afternoon-market-recap-for-may-24-2019-highline-grain-growers-inc.md) | +4.0% | +9.2% |
| CORN | 2017-05-20 | [GRAIN MARKETS: Cold and wet forecast for Midwest lifts corn](https://feedsoft.ai/events/10219-grain-markets-cold-and-wet-forecast-for-midwest-lifts-corn.md) | +1.0% | +2.3% |
| SOY | 2022-01-17 | [Brazil’s Drought Reduces Grain Harvest Forecasts](https://feedsoft.ai/events/13749-brazil-s-drought-reduces-grain-harvest-forecasts.md) | +3.4% | +15.7% |
| SOY | 2020-10-05 | [Grain Markets Start the Week Higher - ProAg](https://feedsoft.ai/events/11633-grain-markets-start-the-week-higher-proag.md) | +4.4% | +3.5% |
| SOY | 2019-05-22 | [Afternoon Market Recap for May 24, 2019 - HighLine Grain Growers, Inc](https://feedsoft.ai/events/5437-afternoon-market-recap-for-may-24-2019-highline-grain-growers-inc.md) | +6.1% | +9.9% |

## Sources

- agriculture.com: https://www.agriculture.com/grain-markets-open-higher-or-tuesday-december-26-2023-8420132

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.