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Corn futures fell 7.8% as crude oil collapsed, with Brent and WTI dropping to their lowest levels since April and early summer respectively. Investors sold commodities and bought U.S. government bonds, pushing the dollar to a 20-year high.
The USDA July report added little support, with a small rise in world corn production and ending stocks.
Weaker energy prices reduce the cost of biofuel-linked corn demand and pull grain prices lower, while a stronger dollar makes U.S. feed grains more expensive for importers. Buyers may see cheaper feed inputs in the near term.
ukragroconsult.comJul 13, 2022After 301 past bearish macro events, Corn moved a median -0.1% over 5 sessions (47% higher; middle half -2.2% to +1.3%), and +0.2% over 20.
After 565 past bearish macro events, Crude Oil (WTI) moved a median -1.4% over 5 sessions (41% higher; middle half -5.9% to +3.0%), and -0.5% over 20.
After 312 past bearish macro events, Crude Oil (Brent) moved a median -1.7% over 5 sessions (38% higher; middle half -5.4% to +2.3%), and -1.7% over 20.
After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% 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.
Corn futures fell about 7.8% as crude oil collapsed, the dollar hit a 20-year high and investors sold commodities, with the bearish USDA report adding to the pressure.
Corn fell as crude oil collapsed, commodities were sold broadly and the dollar hit a 20-year high, a macro, energy and currency driver in the window.
