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NIDIS issued a Midwest and Missouri River Basin drought update stating that 60% of the north central U.S. is in moderate to exceptional drought, with 30% in severe or worse. Exceptional drought covers 30% of Kansas and 12% of Nebraska.
Record low streamflow on the Mississippi, Missouri and Ohio rivers is restricting barge navigation.
Low river levels raise barge freight costs and limit grain movement on the Mississippi, pressuring Midwest basis and supporting export logistics costs. Drought stress also threatens 2023 winter wheat and pasture, which can lift feed grain prices.
drought.govOct 25, 2022Not enough comparable past events yet for a historical read.
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 1,072 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.
After 322 past bullish weather events, Wheat (HRW) moved a median -0.1% over 5 sessions (49% higher; middle half -2.5% to +3.2%), and +1.0% 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.
