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USDA slashed 2020 corn and soybean yield forecasts more than the trade expected in its November WASDE, and corn and soybean futures rose 2.35% to 2.82% after the release. The agency lowered global corn, soybean and wheat ending stocks, raised the average corn price by 40 cents to $4.00 per bushel, and projected record corn exports of 2.65 billion bushels.
Reduced yields and record export projections tighten US and global feed grain supplies, supporting prices for corn and related feed ingredients. The higher USDA price forecast reflects the expected firmer market into the new marketing year.
agrimarketing.comNov 11, 2020After 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.
Futures rose 2-3% after the USDA yield cuts, with record corn exports projected, which boosts demand.
