# Commodities Report Hensall Co-op

> Grain prices diverged sharply last week, with corn the weakest as collapsing ethanol prices, now under $0.90/gallon, prompted plant shutdowns. Soybeans and wheat gained, and soybean meal rose $38 a ton, a 12.7% gain, as Argentina's coronavirus lockdown reduced its exports. Less DDGS will be produced as ethanol plants close.

- Date: 2020-03-24 · published 2020-03-24T12:00:00.000Z
- Category: macro · region US · magnitude medium
- Page: https://feedsoft.ai/events/6174-commodities-report-hensall-co-op
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [DDGS](https://feedsoft.ai/c/DDGS.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

Ethanol plant closures cut corn demand and DDGS output, which weighs on corn and feed co-product supply. Argentine export restrictions tighten soymeal supply and support prices.

## Read by commodity

- SBM: bullish ▲
- SOY: bullish ▲
- WTI: bearish ▼
- CORN: bearish ▼
- DDGS: bearish ▼
- WHEAT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| CORN | 2020-03-23 | 1 | -2.1% | -3.1 | Ethanol prices under $0.90/gal and plant shutdowns cut corn grind demand and DDGS output, which explains why corn was the weakest grain heading into the 23 March move. |
| SBM | 2020-03-24 | 1 | -3.1% | -3.3 | Soymeal had gained 12.7% (+$38/t) in a week on Argentina's lockdown, so the market was stretched and prone to profit-taking and mean reversion. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2022-09-27 | [Dollar rally, recession fears wreak havoc on commodities](https://feedsoft.ai/events/11908-dollar-rally-recession-fears-wreak-havoc-on-commodities.md) | +1.8% | +4.0% |
| CORN | 2022-07-07 | [The recent commodity sell-off](https://feedsoft.ai/events/5055-the-recent-commodity-sell-off.md) | -0.6% | -15.3% |
| CORN | 2016-06-24 | [Ag Commodities, Companies Slapped Hard by Brexit Vote - 24/7 Wall St.](https://feedsoft.ai/events/9750-ag-commodities-companies-slapped-hard-by-brexit-vote-24-7-wall-st.md) | -4.9% | -5.4% |
| CORN | 2018-02-01 | [No bull market ahead for commodities, Wells Fargo says](https://feedsoft.ai/events/66409-no-bull-market-ahead-for-commodities-wells-fargo-says.md) | +0.6% | +2.1% |
| CORN | 2020-03-20 | [Commodity weekly \| Saxo](https://feedsoft.ai/events/7426-commodity-weekly-saxo.md) | -0.6% | -3.1% |
| SBM | 2020-01-27 | [Due to oil prices on the world market, the prices of all commodities are rising – Lider Media](https://feedsoft.ai/events/55169-due-to-oil-prices-on-the-world-market-the-prices-of-all-commodities-are-rising.md) | -2.4% | -4.1% |
| SBM | 2020-04-09 | [Return to corn-soy diets](https://feedsoft.ai/events/53958-return-to-corn-soy-diets.md) | -0.3% | -3.1% |
| SBM | 2020-04-20 | [Article Headline \| 2020-04-20  \| Agri-Pulse Communications, Inc.](https://feedsoft.ai/events/53766-article-headline-2020-04-20-agri-pulse-communications-inc.md) | -0.2% | -0.2% |

## Sources

- hensallco-op.ca: https://hensallco-op.ca/blog/Commodities-Report-20200324033449.htm

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