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Grain markets had a sharp sell-off on Thursday, with most commodities down and many hitting limit or expanded limit down. Factors cited included Fed Chair Powell hinting at a 2022 rate hike, rumors that China was limiting purchases to curb food inflation, and cooler, wetter forecasts.
Reports of Chinese purchases on Friday suggest possible demand support for soybeans, but the weather shift reduces the crop-risk premium.
agweek.comMichelle RookJun 18, 2021Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
The June 17 grain sell-off, driven by Powell's rate-hike hint, China purchase-limit rumors and cooler, wetter forecasts, caused broad liquidation that dragged wheat lower inside the 5-day window.
Explains the broad grain selloff via Fed rate-hike signals, China purchase-limit rumors and cooler, wetter forecasts, which sustained fund liquidation into the following session.
