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Argentina's drought has pushed soy and corn fields to receive only about 3.5 cm of rain since January, less than a fifth of normal, with temperatures also elevated. Funds have raised bets on price gains to their highest in almost a year.
Argentina is a major exporter of soymeal and corn, so crop losses there tighten global feed supply and support higher prices for soy-based and corn feed ingredients.
bloomberg.comJonathan Gilbert, Shruti SinghFeb 16, 2018After 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.
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 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.
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.
