# 'Ugly week in the grains' attributed to interest rate rumors, China rumors and weather change - Agweek | #1 source for agriculture news, farming, markets

> 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.

- Date: 2021-06-18 · published 2021-06-18T12:00:00.000Z
- Category: market · region US · magnitude medium
- Page: https://feedsoft.ai/events/5761-ugly-week-in-the-grains-attributed-to-interest-rate-rumors-china-rumors-and
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Corn](https://feedsoft.ai/c/CORN.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md)

## Why it matters

Reports of Chinese purchases on Friday suggest possible demand support for soybeans, but the weather shift reduces the crop-risk premium.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- WHEAT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WHEAT | 2021-06-25 | 5 | -6.6% | -2.9 | 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. |
| WHEAT | 2021-06-21 | 1 | -5.4% | -4.3 | 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. |

## Sources

- agweek.com: https://www.agweek.com/business/ugly-week-in-the-grains-attributed-to-interest-rate-rumors-china-rumors-and-weather-change

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.