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The May WASDE projected abundant exporter supplies for 2020-21 wheat, with Argentina expected to have large exports, Australia its largest crop in four years, and Canada larger output. EU exports are forecast to plunge on a much smaller crop, while Russia is expected to regain its lead as top exporter with a bumper crop.
Heavier competition among exporters and lower EU exports point to softer wheat prices and more wheat available for feed use, while large corn supplies reduce wheat's use in animal feed.
graincentral.comGrain CentralMay 13, 2020After 1,006 past bearish report events, WHEAT moved a median +0.0% over 5 sessions (50% higher; middle half -1.6% to +1.8%), and +0.3% over 20.
After 138 past bearish report events, KWHEAT moved a median +0.0% over 5 sessions (50% higher; middle half -2.9% to +2.4%), and +0.5% over 20.
After 1,102 past bearish report events, CORN moved a median -0.2% over 5 sessions (47% higher; middle half -1.8% to +1.3%), and +0.0% 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.
WASDE pointed to abundant exporter supplies (Russia bumper crop, Australia, Canada, Argentina), increasing export competition and pressuring US HRW prices.
