Grain Rally Fades as Seasonal Selling Takes Hold | Presented by CME Group

Summary

The video reviews the sharp reversal in grain futures after a May surge driven by geopolitical and supply worries. Once planting finished and weather risks faded, speculative money quickly exited, sending corn, soybean, and wheat prices sharply lower. The move is presented as a classic seasonal pattern with a 'buy the rumor, sell the fact' top in wheat.

• Corn, soybean and wheat futures rallied in May on geopolitical, fertilizer and acreage concerns.
• Speculative long positions reached record levels as funds hedged against inflation.
• With row crops planted and weather concerns abating, speculative money rapidly exited.
• July corn futures fell 14.4% from their May high in the first week of June.
• July soybeans dropped 9.2% from their May peak, hitting lowest since early February.
• Wheat futures made a 'buy the rumor, sell the fact' high after a bullish USDA report, then sold off 17.2%.
• The selloff fits strong seasonal tendencies for grain markets as harvest approaches.