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March corn gapped higher after the US-China trade agreement at the G20 suspended new tariffs for 90 days and China signaled large purchases of US farm and other goods. Export inspections remained far above year-ago levels, while China's 25% tariff on US corn, milo and soybeans is still in place.
Suspended tariffs and expected Chinese buying support US soybean and corn prices. Prices stay capped until the tariff is removed and actual purchases are confirmed.
dtnpf.comDana MantiniDec 3, 2018After 696 past bullish trade events, SOY moved a median +0.3% over 5 sessions (54% higher; middle half -1.3% to +1.9%), and +0.7% over 20.
After 729 past bullish trade events, CORN moved a median +0.4% over 5 sessions (56% higher; middle half -1.1% to +1.8%), 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.
The US-China G20 trade truce suspended new tariffs for 90 days and signaled large Chinese purchases of US farm goods, so March corn gapped higher on the demand and trade-flow outlook.
US-China G20 truce suspending new tariffs for 90 days and signaling large farm purchases caused March corn to gap higher, directly driving the move ending Dec 3.
