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An explainer on how USDA reports drove large corn and soybean price swings in 2020. Revisions to the 2020 corn yield and to ending stocks, including a 205 million-bushel cut, sent prices rallying past pre-pandemic levels.
The article frames the reports as a major source of market volatility.
Surprise USDA revisions can rapidly reprice corn and soybeans, so feed buyers should watch report dates and hedge around them. The article does not describe a new supply change.
farmprogress.comJacqueline HollandJan 13, 2021After 2,389 past report events, SOY moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.9%), and +0.1% over 20.
After 770 past neutral report events, CORN moved a median +0.2% over 5 sessions (54% higher; middle half -1.1% to +1.6%), and +0.7% 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.
