# (12/16/19) Phase 1 Deal Bullish for Grains

> Grain markets rallied on the announced US-China Phase One trade deal, which had not yet been signed. March corn futures tested resistance near $3.82 as funds covered shorts, and soybeans rose sharply on Friday before giving back some gains.

- Date: 2019-12-16 · published 2019-12-16T12:00:00.000Z
- Category: trade · region US · magnitude high
- Page: https://feedsoft.ai/events/12109-12-16-19-phase-1-deal-bullish-for-grains
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

Tariff relief and a $40-50 billion Chinese ag purchase commitment support demand for US grains and soybeans. Heavy fund net short positions add short-covering fuel to prices.

## Read by commodity

- SOY: bullish ▲
- CORN: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2019-12-14 | [Grains go green for Phase 1 trade deal — this week in the grain markets - RealAgriculture](https://feedsoft.ai/events/12111-grains-go-green-for-phase-1-trade-deal-this-week-in-the-grain-markets.md) | +4.2% | +4.8% |
| CORN | 2020-08-26 | [China’s demand for feed grains on the rise \| Feed Strategy](https://feedsoft.ai/events/51597-china-s-demand-for-feed-grains-on-the-rise-feed-strategy.md) | +1.5% | +7.0% |
| CORN | 2020-04-02 | [Chart Of Note: U.S. Corn Sales To China Show Continued Activity Following Phase 1 Trade Deal - U.S. Grains & BioProducts Council](https://feedsoft.ai/events/53506-chart-of-note-u-s-corn-sales-to-china-show-continued-activity-following-phase-1.md) | -1.1% | -8.6% |
| CORN | 2019-01-30 | [Firm finish for grains and oilseeds - Brownfield Ag News](https://feedsoft.ai/events/61153-firm-finish-for-grains-and-oilseeds-brownfield-ag-news.md) | +0.2% | -0.3% |
| CORN | 2021-09-02 | [Phase One Trade Deal Now in Final Quarter -](https://feedsoft.ai/events/44958-phase-one-trade-deal-now-in-final-quarter.md) | -3.0% | -5.5% |
| SOY | 2019-12-14 | [Grains go green for Phase 1 trade deal — this week in the grain markets - RealAgriculture](https://feedsoft.ai/events/12111-grains-go-green-for-phase-1-trade-deal-this-week-in-the-grain-markets.md) | +2.3% | +2.3% |
| SOY | 2020-02-13 | [U.S. grains: Soy up on prospects for Chinese demand - AgCanada](https://feedsoft.ai/events/54655-u-s-grains-soy-up-on-prospects-for-chinese-demand-agcanada.md) | +0.0% | -4.2% |
| SOY | 2019-01-30 | [Firm finish for grains and oilseeds - Brownfield Ag News](https://feedsoft.ai/events/61153-firm-finish-for-grains-and-oilseeds-brownfield-ag-news.md) | +0.1% | -1.7% |

## Sources

- moneyshow.com: https://www.moneyshow.com/articles/tradingidea-53125/

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