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Drought across the U.S. to Black Sea regions is hampering wheat plantings and raising concerns the market could tighten further. Importers are building reserves while fund managers turn more bullish on wheat.
Dry planting conditions and reserve-building by importers support wheat futures, which in turn lifts feed-grade wheat and corn alternatives in feed rations.
bloomberg.comAnatoly Medetsky, Megan Durisin AlberyOct 20, 2020After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 322 past bullish weather events, Wheat (HRW) moved a median -0.1% over 5 sessions (49% higher; middle half -2.5% to +3.2%), and +1.0% over 20.
After 445 past neutral weather events, Corn moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% 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.
