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Wheat, corn and soybean prices are surging to their highest levels since 2013. Dryness in the U.S., Canada and France is hurting wheat, Brazilian corn faces dry weather, and Argentina's soy harvest is disrupted by rain.
China is also buying heavily.
Broad grain strength and Chinese import demand raise feed ingredient costs, with inflation risk spreading to downstream food prices.
aljazeera.comKim Chipman, Megan Durisin, BloombergApr 26, 2021After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
After 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 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 453 past bullish weather events, Soybean Meal moved a median +0.5% over 5 sessions (55% higher; middle half -1.6% to +2.7%), and +0.5% 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.
Brazil dryness and strong Chinese buying drove grains to highest since 2013, a supply and demand tightening.
Same-day coverage of surging grain prices on dryness in the US and Brazil plus heavy Chinese buying reflects the supply and demand drivers.
