# The recent commodity sell-off

> Commodity futures fell over the two weeks before July 7, 2022, as fund groups took profits after the Federal Reserve raised interest rates to fight inflation. Recession fears and concerns about Chinese growth led traders to sell commodity positions broadly, and grain prices had returned to levels from the prior summer.

- Date: 2022-07-07 · published 2022-07-07T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/5055-the-recent-commodity-sell-off
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Higher rates and recession risk reduce speculative demand for commodities, so prices may stay under pressure unless inflation or supply concerns return to draw fund money back in.

## Read by commodity

- SOY: bearish ▼
- WTI: bearish ▼
- CORN: bearish ▼
- WHEAT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WHEAT | 2022-07-06 | 5 | -9.1% | -3.0 | Broad commodity selloff on Fed tightening and recession fears drove fund profit-taking across commodities including wheat. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2021-06-18 | [Explained: What spurred the global commodity market sell-off? - CNBC TV18](https://feedsoft.ai/events/5760-explained-what-spurred-the-global-commodity-market-sell-off-cnbc-tv18.md) | +0.3% | -5.2% |
| CORN | 2020-03-20 | [Commodity weekly \| Saxo](https://feedsoft.ai/events/7426-commodity-weekly-saxo.md) | -0.6% | -3.1% |
| CORN | 2022-06-20 | [Selling trend picks up in commodity markets](https://feedsoft.ai/events/40852-selling-trend-picks-up-in-commodity-markets.md) | -3.7% | -11.8% |
| CORN | 2020-03-24 | [Commodities Report Hensall Co-op](https://feedsoft.ai/events/6174-commodities-report-hensall-co-op.md) | +6.1% | -4.7% |
| CORN | 2017-06-26 | [Slumping Commodity Prices Pressure the Brazilian Real in 2Q17](https://feedsoft.ai/events/70712-slumping-commodity-prices-pressure-the-brazilian-real-in-2q17.md) | +3.2% | +4.3% |
| SOY | 2021-06-18 | [Explained: What spurred the global commodity market sell-off? - CNBC TV18](https://feedsoft.ai/events/5760-explained-what-spurred-the-global-commodity-market-sell-off-cnbc-tv18.md) | +3.1% | +9.4% |
| SOY | 2021-02-27 | [Commodity returns plunge the most in months amid stronger dollar](https://feedsoft.ai/events/48541-commodity-returns-plunge-the-most-in-months-amid-stronger-dollar.md) | +2.1% | -0.3% |
| SOY | 2022-06-23 | [Recession worries trigger grains selloff – The Seam](https://feedsoft.ai/events/12700-recession-worries-trigger-grains-selloff-the-seam.md) | +1.3% | -14.2% |

## Sources

- farmprogress.com: https://www.farmprogress.com/commentary/the-recent-commodity-sell-off

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.