Loading…
A University of Arkansas report says COVID-19 lockdowns cut global demand for corn and cotton, with cotton futures down as much as 25 percent at points. The Renewable Fuel Association estimated biofuel demand would fall 20-25 percent in the short term, reducing ethanol-linked corn demand.
Lower ethanol and energy-linked demand removes a large share of corn usage, so prices have reset at lower levels. Feed buyers should expect corn to remain under pressure while energy demand stays weak.
qualityfarmsupply.comQFS OnlineJul 10, 2020After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% 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.
