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Hog futures rose sharply to a 20-month high in late May and early June 2016 as summer grilling demand grew and investors bet on a seasonal rally. Corn neared a one-year high at $4.15 per bushel and soybeans reached about $11.70, their highest in almost two years, as wet weather damaged South American crops and a summer drought was feared in the US.
Wet conditions in Brazil and Argentina cut South American supply and raise demand for US grain, while hog price strength supports demand for feed.
greeleytribune.comAlex BreitingerJun 3, 2016After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 12 past bullish weather events, Lean Hogs moved a median +1.5% over 5 sessions (58% higher; middle half -1.6% to +7.1%), and -3.9% 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.
Weather worries (feared summer US drought, wet South American crops) pushed corn toward a one-year high just before the move, adding bullish supply-risk sentiment and momentum.
