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Funds extended short covering in CBOT wheat as Russian crop dryness raised supply concerns. The article also notes soybeans and meal rallied after an Argentine port strike and Brazilian flooding that may have cut Rio Grande do Sul soybean output by 15%.
Dry Russian conditions tighten the wheat export outlook from the world's largest supplier, supporting wheat prices. Port strikes in Argentina and flooding in Brazil cut soy and meal supply, lifting soymeal prices for feed buyers.
reuters.comKaren BraunMay 7, 2024After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 453 past bullish weather events, Soybean Meal moved a median +0.5% over 5 sessions (55% higher; middle half -1.6% to +2.7%), and +0.5% over 20.
After 18 past neutral weather events, Soybean Oil moved a median +2.6% over 5 sessions (72% higher; middle half -0.4% to +3.5%), and +3.6% 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.
Argentine port strike and Brazilian flooding (possible 15% Rio Grande do Sul output cut) triggered a soybean and meal rally via supply disruption and export-flow concerns.
It links the meal rally to an Argentine port strike and Brazilian flood losses, which are plausible supply-side drivers, but it is dated May 7 and is partly about wheat.
