Flash drought expanded across the Midwest and High Plains as a heat wave pushed temperatures 10 to 15 degrees above normal with little rain. Missouri, eastern Kansas and southeast Nebraska saw large drought expansions, while some northern areas received heavy rain.
Rapid drought development during the grain fill period threatens corn and soybean yields, which supports feed grain and meal prices.
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.
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.
Flash drought and a heat wave across the Midwest and High Plains raised crop stress and supply concerns, bullish for corn.