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Wheat futures posted their biggest weekly gain in six years on weather problems, with corn and soybean futures trading in opposite directions. CBOT corn fell Friday as recent rains crossed the Midwest during pollination, a crucial yield-determining phase.
The report describes the divergence between wheat and corn moves.
Weather-driven wheat gains raise feed wheat costs and substitution pricing for feed rations, while corn weakness reflects favorable pollination rains. Wheat strength is a meaningful driver for feed grain alternatives.
reuters.comJulie IngwersenJul 16, 2021After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 357 past bearish weather events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -2.2% to +1.3%), and -0.5% over 20.
After 324 past neutral weather events, Soybeans moved a median +0.0% over 5 sessions (52% higher; middle half -1.4% to +1.7%), and +0.7% 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.
CBOT corn fell as rains crossed the Midwest during pollination, easing weather risk premium and driving the weekly decline.
