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Chicago soybean, corn and wheat futures plunged on Monday as fresh coronavirus lockdown concerns triggered a global risk-off move. Wheat fell 3.7 percent, its biggest daily drop since August 2019, and soybeans settled down 2.1 percent despite a USDA report of a 132,000-tonne private sale to China.
Analysts said funds were heavily long soybeans and liquidated positions while investors sought the U.S. dollar.
Broad risk aversion and fund liquidation pushed grain prices lower, and a stronger dollar makes US exports less competitive. Buyers of feed grains and meal may see softer near-term prices, though the drop was driven by sentiment rather than a change in supply.
grainews.caGFM Network NewsSep 21, 2020After 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 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 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 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.
Directly explains the 2020-09-21 drop: a global risk-off move on fresh lockdown fears and heavy fund liquidation sent corn, soybeans and wheat sharply lower.
