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Grain and soybean futures fell sharply in late August 2016 as abundant US and global supplies weighed on the market. Wheat led the decline, hitting a new 10-year low on a huge Russian crop, and corn also fell to contract lows.
Live cattle slid after a larger-than-expected cold storage beef inventory and the August Cattle-on-Feed report, and a stronger dollar on Fed rate-hike signals added pressure.
A large Russian wheat crop and ample US corn and soybean supplies push grain prices lower. A firmer dollar also weakens US commodity competitiveness in export markets.
agrimarketing.comAug 29, 2016Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
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.
Late-August 2016 grain selloff on abundant US and global supplies, with corn hitting contract lows, wheat at 10-year lows, and a stronger dollar on Fed rate-hike signals, directly explains the 5-day decline.
Late-August bearish fundamentals (larger cold storage beef inventory, Cattle-on-Feed report, stronger dollar) set up the weak sentiment that fed the selloff.
