Loading…
China's yuan slipped against the US dollar on April 26 and fell to a record low against a basket of currencies after the PBOC set a weaker midpoint of 6.8845. The CFETS basket index dropped to 92.67, the lowest since its data began in late 2015.
Tightening onshore liquidity, with overnight SHIBOR at a two-year high, was expected to limit losses.
A weaker yuan makes Chinese buyers of US feed ingredients such as DDGS and soymeal less price-competitive at the margin, so it is mildly bearish for US exports. The move is largely currency-driven rather than a change in feed demand.
businesstimes.com.sgApr 25, 2017After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
Not enough comparable past events yet for a historical read.
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.
