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USDA's May WASDE raised domestic and global ending stocks for both 2019/20 and 2020/21 for wheat, corn and soybeans. Corn and soybean stocks rose on COVID-19 demand destruction and weaker exports.
Wheat prices fell on the larger stockpile figures.
Bigger ending stocks point to weaker feed-grain and soymeal demand and lower prices. The pandemic-driven demand loss is a key bearish driver for the new crop.
farmprogress.comBen PotterMay 12, 2020After 1,102 past bearish report events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.8% to +1.3%), and +0.0% over 20.
After 788 past bearish report events, Soybeans moved a median -0.3% over 5 sessions (47% higher; middle half -2.0% to +1.5%), and -0.9% over 20.
After 1,006 past bearish report events, Wheat (SRW) moved a median +0.0% over 5 sessions (50% higher; middle half -1.6% to +1.8%), and +0.3% 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.
