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US grain and soybean futures extended losses on July 13 after USDA raised corn production and cut soybean harvest forecasts while reducing corn demand. Sharply lower energy prices, a 20-year high in the dollar and talks on Ukrainian grain exports also weighed on wheat.
A stronger dollar makes US commodities more expensive for foreign buyers, and weaker energy prices reduce demand expectations, both of which push feed grain and soymeal prices lower.
brecorder.comReutersJul 13, 2022After 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, SOY 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 moved a median +0.0% over 5 sessions (50% higher; middle half -1.6% to +1.8%), and +0.3% over 20.
After 171 past bearish report events, WTI moved a median -1.5% over 5 sessions (37% higher; middle half -4.8% to +1.9%), 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.
Grain futures extended losses as USDA raised corn production and cut corn demand, with lower energy prices and a strong dollar weighing on prices.
Losses deepened on July 13 as USDA raised corn production, demand was cut, energy fell and the dollar hit a 20-year high.
Losses deepened on July 13 on lower energy prices, a very strong dollar and Ukraine export talks, so the selling momentum carried into July 14.
