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China's official manufacturing activity shrank faster than expected in May as weakening demand deepened. The weak readings pushed Asian markets lower, with the yuan, Australian dollar and New Zealand dollar all falling sharply.
Softer Chinese industrial demand points to lower import needs for soybeans and feed inputs, which weighs on feed commodity prices. A weaker yuan also makes dollar-priced imports more expensive for Chinese buyers, which can further reduce purchasing.
reuters.comLiangping Gao, Ryan WooMay 31, 2023After 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 24 past report events, Chinese Yuan (CNY per USD) moved a median -0.0% over 5 sessions (46% higher; middle half -0.3% to +0.4%), and -0.9% 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.
