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U.S. corn futures fell more than 3 percent on Monday as forecasts called for much-needed rain in the Midwest. Soybeans also weakened, while wheat slipped under pressure from corn and soy and from the U.S. winter wheat harvest.
Corn posted the biggest declines because it is seen as the most likely to benefit from the rains.
Improved moisture before corn pollination lowers the odds of a drought-related yield cut, which weighs on near-term feed grain prices. Soybeans are less sensitive to July weather, so their move is smaller.
agweek.comJulie Ingwersen/ReutersJun 20, 2016After 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 363 past bearish weather events, Soybeans moved a median -0.6% over 5 sessions (42% higher; middle half -2.5% to +1.1%), and -0.2% over 20.
After 334 past bearish weather events, Wheat (SRW) moved a median -0.2% over 5 sessions (47% higher; middle half -1.9% to +1.7%), and -0.2% 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.
On 2016-06-20 corn fell over 3% on Midwest rain forecasts and long liquidation, and wheat slipped with corn and soy plus winter wheat harvest pressure, which matches the move date.
