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China signed US agriculture purchase agreements at a forum in Iowa, the first bulk signings since 2017, covering soybeans, corn, sorghum and wheat. Purchases from the latest US harvest were still far below last year, with soybeans down 39% and corn down 73% as of Oct.
19. Brazil's bumper crops have kept Chinese buyers supplied elsewhere.
The signed contracts give US exporters a firmer outlook for Chinese demand, which supports US soybean, corn and sorghum prices. Actual shipments remain well behind last year, so the price effect is limited until sales are executed.
reuters.comTom PolansekOct 24, 2023After 696 past bullish trade events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.3% to +1.9%), and +0.7% over 20.
After 729 past bullish trade events, Corn moved a median +0.4% over 5 sessions (56% higher; middle half -1.1% to +1.8%), and +0.5% over 20.
Not enough comparable past events yet for a historical read.
After 431 past bullish trade events, Wheat (SRW) moved a median +0.0% over 5 sessions (50% higher; middle half -1.3% to +2.1%), and +0.5% 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.
