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As of May 28, the Drought Monitor showed 26% of the U.S. under abnormal dryness or drought, down one point from the prior week. USDA estimated drought covered 5% of corn production areas and 3% of soybean areas, down five and four points respectively.
Shrinking drought footprints on cropland reduce weather risk premium in corn and soybeans, a mildly bearish signal for feed grain and meal prices.
profarmer.comBrian GreteMay 30, 2024After 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, SOY moved a median -0.6% over 5 sessions (42% higher; middle half -2.5% to +1.1%), and -0.2% over 20.
After 118 past bearish weather events, SBM moved a median -0.8% over 5 sessions (35% higher; middle half -3.2% to +0.4%), and -1.6% 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.
