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Brazil's main Ibovespa stock index fell 10 percent within 90 minutes of the open, triggering a 30-minute trading halt. The real lost 8 percent against the US dollar as President Temer refused to resign amid corruption allegations.
Congress cancelled its sessions, suspending work on legislation the administration wanted.
Political turmoil in Brazil weakens the real, which makes Brazilian soybean and corn exports cheaper in dollar terms and can pressure US soy and corn prices. Stalled reform legislation adds uncertainty to Brazil's fiscal and economic outlook.
apnews.comPETER PRENGAMAN, MAURICIO SAVARESE, SARAH DiLORENZOMay 19, 2017After 338 past bullish events of any kind, Brazilian Real (BRL per USD) moved a median +0.3% over 5 sessions (56% higher; middle half -1.3% to +1.7%), and +1.0% over 20.
After 53 past bearish geopolitics events, Soybeans moved a median -0.3% over 5 sessions (47% higher; middle half -1.9% to +1.2%), and +1.0% over 20.
After 87 past bearish geopolitics events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.5% to +2.1%), and +0.3% 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.
