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StoneX describes the 2020/21 grain rally, which took corn and soybean prices from decade lows in August 2020 to seven-year highs. Drivers included USDA stock revisions, a flash drought, a derecho, and record Chinese demand, which StoneX links mainly to a faster-than-expected hog herd recovery.
Tight US soybean stocks and strong Chinese feed demand keep corn and soybean prices supported, and the analysis points to hog herd rebuilding as the key demand driver.
stonex.comGlobal AuthorFeb 21, 2021After 151 past bullish macro events, Corn moved a median +0.2% over 5 sessions (57% higher; middle half -0.9% to +1.4%), and -0.3% over 20.
After 123 past bullish macro events, Soybeans moved a median +0.3% over 5 sessions (60% higher; middle half -1.0% to +1.8%), and -0.4% over 20.
After 44 past bullish macro events, Soybean Meal moved a median -0.6% over 5 sessions (34% higher; middle half -1.9% to +0.9%), and -2.9% 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.
