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The Federal Reserve raised its target federal funds rate by 25 basis points to 0.50-0.75 percent and signaled three hikes in 2017 instead of two. Two-year Treasury yields hit their highest since 2009, the dollar rose to a 10-month high against the yen, and US stocks posted their biggest percentage decline since the November election.
A stronger dollar and higher yields make dollar-denominated commodities more expensive for foreign buyers and raise financing costs for feed importers and livestock producers, which tends to weigh on grain and meal prices.
business-standard.comReutersDec 14, 2016After 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.
After 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 273 past bearish macro events, Soybeans moved a median -0.4% over 5 sessions (44% higher; middle half -2.4% to +1.4%), and -0.5% 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.
