# Markets plunge on big crops

> Grain futures fell sharply after USDA's August WASDE report raised US soybean yield to 51.6 bushels per acre from 48.5 and total production to 4.586 billion bushels, well above trade expectations. Corn and wheat also traded lower, with analysts noting corn and wheat fundamentals are relatively better. Soybean ending stocks were raised by 205 million bushels.

- Date: 2018-08-10 · published 2018-08-10T12:00:00.000Z
- Category: report · region US · magnitude high
- Page: https://feedsoft.ai/events/8651-markets-plunge-on-big-crops
- Commodities: [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md)

## Why it matters

Larger-than-expected US soybean and corn supplies and higher ending stocks point to lower feed and oilseed meal prices. The surprise yield jump is a major bearish driver for the complex.

## Read by commodity

- SBM: bearish ▼
- SOY: bearish ▼
- CORN: bearish ▼
- WHEAT: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SOY | 2018-08-09 | 1 | -4.7% | -3.5 | The August 10 WASDE raised soybean yield to 51.6 bpa and production to 4.586 billion bushels, far above trade expectations, which drove the sharp one-day price drop. |
| SBM | 2018-08-09 | 1 | -3.1% | -3.0 | Details the WASDE soybean yield increase to 51.6 bpa and production of 4.586 billion bushels, well above trade expectations, which pushed grain futures sharply lower. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2021-05-12 | [Markets mixed on new crop estimates](https://feedsoft.ai/events/47043-markets-mixed-on-new-crop-estimates.md) | -1.5% | -4.7% |
| WHEAT | 2022-01-12 | [Markets mixed on USDA data](https://feedsoft.ai/events/43102-markets-mixed-on-usda-data.md) | +3.9% | +2.0% |
| WHEAT | 2018-03-12 | [Tennessee Market Highlights \| UT Crops News](https://feedsoft.ai/events/65957-tennessee-market-highlights-ut-crops-news.md) | -0.4% | +0.9% |
| WHEAT | 2022-07-12 | [USDA Reports Cause Grain, Soybean Markets to Continue to Plunge](https://feedsoft.ai/events/4307-usda-reports-cause-grain-soybean-markets-to-continue-to-plunge.md) | +7.2% | +7.0% |
| WHEAT | 2017-08-10 | [Crop markets tumble after bearish USDA numbers](https://feedsoft.ai/events/69394-crop-markets-tumble-after-bearish-usda-numbers.md) | -0.2% | -0.6% |
| CORN | 2021-05-12 | [Markets mixed on new crop estimates](https://feedsoft.ai/events/47043-markets-mixed-on-new-crop-estimates.md) | -7.8% | -3.3% |
| CORN | 2020-01-10 | [Grain markets fall on WASDE, Crop Production Reports](https://feedsoft.ai/events/55018-grain-markets-fall-on-wasde-crop-production-reports.md) | -1.0% | -0.7% |
| CORN | 2022-07-12 | [USDA Reports Cause Grain, Soybean Markets to Continue to Plunge](https://feedsoft.ai/events/4307-usda-reports-cause-grain-soybean-markets-to-continue-to-plunge.md) | -13.6% | -16.3% |

## Sources

- feedstuffs.com: https://www.feedstuffs.com/agribusiness-news/markets-plunge-on-big-crops
- oilandgas360.com: https://www.oilandgas360.com/how-a-double-capacity-panama-canal-drives-a-volatile-east-coast-v-west-coast-spread/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.