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Commodity prices fell on Thursday, reversing gains made earlier in 2021, as China acted to stabilise prices and the US dollar strengthened. The dollar hit a two-month high after hawkish Fed statements, and soybean futures fell 20% from May eight-year highs.
A stronger dollar makes dollar-priced commodities costlier for foreign buyers, lowering demand and pressuring feed ingredient prices.
cnbctv18.comYashi GuptaJun 18, 2021After 273 past bearish macro events, Soybeans moved a median -0.4% over 5 sessions (44% higher; middle half -2.4% to +1.4%), and -0.5% over 20.
After 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.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
Commodity sell-off from China price stabilization and a two-month-high dollar after hawkish Fed hit soybean futures, down 20% from May highs.
