# Chinese startle U.S. grain markets | Iowa Agribusiness Radio Network

> Grain markets opened lower on August 5, 2019 after reports that China told its grain buyers to stop purchasing US grain, which were later partly walked back. China also allowed the yuan to weaken past seven per US dollar. Analysts expect choppy trade ahead of the August WASDE.

- Date: 2019-08-05 · published 2019-08-05T12:00:00.000Z
- Category: trade · region China · magnitude high
- Page: https://feedsoft.ai/events/6045-chinese-startle-u-s-grain-markets-iowa-agribusiness-radio-network
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Chinese Yuan (CNY per USD)](https://feedsoft.ai/c/USDCNY.md)

## Why it matters

Reported Chinese purchase halts threaten US export demand for corn and soybeans, while a weaker yuan makes US exports more expensive for Chinese buyers. Signs of a trade-war currency response add risk, though the walk-back limits the damage.

## Read by commodity

- SOY: bearish ▼
- CORN: bearish ▼
- USDCNY: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| CORN | 2019-08-05 | 1 | -4.1% | -5.5 | On Aug 5 China reportedly told buyers to halt US grain purchases and let the yuan weaken past 7 per dollar, a direct demand and currency shock that opened corn sharply lower on the day of the move. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2020-07-13 | [Grain markets carry somber tone into new trading week \| Iowa Agribusiness Radio Network](https://feedsoft.ai/events/5291-grain-markets-carry-somber-tone-into-new-trading-week-iowa-agribusiness-radio.md) | -1.6% | -5.7% |
| CORN | 2018-03-13 | [U.S. sorghum growers fear China?s actions \| Iowa Agribusiness Radio Network](https://feedsoft.ai/events/66065-u-s-sorghum-growers-fear-china-s-actions-iowa-agribusiness-radio-network.md) | -1.8% | +2.8% |
| CORN | 2023-05-10 | [Grain Markets React Negatively to Weaker Chinese Demand, Ukraine Deal Negotiations \| American Ag Network](https://feedsoft.ai/events/11371-grain-markets-react-negatively-to-weaker-chinese-demand-ukraine-deal.md) | -7.0% | -9.7% |
| CORN | 2024-01-18 | [Soaring Chinese grain imports create unease on local market](https://feedsoft.ai/events/14780-soaring-chinese-grain-imports-create-unease-on-local-market.md) | +1.1% | -5.6% |
| CORN | 2019-08-02 | [August prices start off with new lows — This week in the grain markets - RealAgriculture](https://feedsoft.ai/events/6040-august-prices-start-off-with-new-lows-this-week-in-the-grain-markets.md) | -1.3% | -7.0% |
| SOY | 2020-07-13 | [Grain markets carry somber tone into new trading week \| Iowa Agribusiness Radio Network](https://feedsoft.ai/events/5291-grain-markets-carry-somber-tone-into-new-trading-week-iowa-agribusiness-radio.md) | +0.7% | -2.4% |
| SOY | 2018-05-02 | [China Seen Jolting Soybean Market by Shunning U.S. Supplies - AgriBusiness Global](https://feedsoft.ai/events/65056-china-seen-jolting-soybean-market-by-shunning-u-s-supplies-agribusiness-global.md) | -3.0% | -1.9% |
| SOY | 2018-04-10 | [In Trade War, U.S. Soy May Be Safe - Rabobank - AgriBusiness Global](https://feedsoft.ai/events/65548-in-trade-war-u-s-soy-may-be-safe-rabobank-agribusiness-global.md) | -0.5% | -4.3% |

## Sources

- iowaagribusinessradionetwork.com: https://iowaagribusinessradionetwork.com/chinese-startle-u-s-grain-markets/

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