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Corn and soybean prices are rallying on a smaller US crop than expected, strong export demand and South American weather concerns. Chinese purchases have reduced US corn carryout, and La Niña is forecast to build into winter.
Tighter US carryout and strong Chinese buying support higher corn and soybean prices, with the risk that a shift in Chinese purchases or La Niña weather could reverse the move. Higher corn costs could also cut ethanol production and DDGS output.
proag.comNov 24, 2020After 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.
After 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.
Not enough comparable past events yet for a historical read.
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.
