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The Bloomberg Grains Subindex fell to its lowest level since 1977 after Trump's new tariff threats against China. The prospect of ending China's tariffs on US soybeans, corn and wheat had been one of the few positives for US agriculture.
China said officials were still planning to travel for talks but could not confirm timing, and a delay was being considered.
Without a near-term trade deal, Chinese purchases of US soybeans, corn and wheat stay at risk, which keeps downward pressure on these futures.
bloomberg.comMichael Hirtzer, Mario ParkerMay 6, 2019After 683 past bearish trade events, Corn moved a median -0.2% over 5 sessions (47% higher; middle half -1.7% to +1.6%), and +0.3% over 20.
After 803 past bearish trade events, Soybeans moved a median +0.0% over 5 sessions (51% higher; middle half -1.7% to +1.7%), and +0.9% over 20.
After 375 past bearish trade events, Wheat (SRW) moved a median -0.2% over 5 sessions (47% higher; middle half -2.0% to +1.1%), and -0.1% 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.
New tariff threats put at risk the prospect of China ending tariffs on US wheat, corn and soybeans, pushing the Bloomberg Grains Subindex to a 42-year low and driving a broad grain selloff.
