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Corn, soybean and wheat futures posted double-digit gains right after the January WASDE and Grain Stocks reports. The USDA cut 2020 corn yields to 172 bushels per acre, below the trade guess of 175.3, and lowered global soybean and corn ending stocks.
Lower U.S. and South American output and lower corn stocks point to higher feed grain and meal costs for buyers. The sharp move shows the market treating the report as a major supply shock.
farmprogress.comBen PotterJan 12, 2021After 1,040 past bullish report events, Corn moved a median +0.5% over 5 sessions (62% higher; middle half -0.9% to +2.0%), and +0.8% over 20.
After 747 past bullish report events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.1%), and +0.8% over 20.
After 769 past bullish report events, Wheat (SRW) moved a median +0.2% over 5 sessions (53% higher; middle half -1.4% to +2.0%), and +0.2% 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.
