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A derecho storm crossed the US Midwest, reportedly damaging over 4 million hectares of arable land in Iowa and flattening much of the maize crop. Chicago maize futures gained $4.53/t in one session, partly on short covering after the USDA projected a large crop.
UK wheat futures also closed higher.
Crop damage in the core Corn Belt reduces expected US maize supply and supports feed grain prices. Buyers face higher corn costs unless the damage proves less severe than reported.
ahdb.org.ukAug 14, 2020After 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.
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.
