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Grain and oilseed futures fell in North America as fears about COVID-19 drove sharp losses. The US Federal Reserve and Bank of Canada each cut key rates by half a percentage point, which briefly lifted prices before the declines resumed.
Attention also turned to spring planting and China's US agricultural import commitments.
Demand fears from the pandemic and risk-off sentiment are pressuring commodity prices, and the volatility is expected to persist.
manitobacooperator.caGlen HallickMar 12, 2020After 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.
After 69 past bearish macro events, Wheat (SRW) moved a median -0.5% over 5 sessions (35% higher; middle half -2.6% to +0.8%), 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.
COVID-19 fear drove sharp losses in grain and oilseed futures, and the emergency rate cuts only briefly lifted prices before declines resumed.
Fear-driven grain and oilseed losses across North America show broad risk-off sentiment pressuring corn despite rate cuts.
