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A Grist feature describes flash droughts, which can develop in as little as five days and recent research indicates are becoming more frequent with climate change. It cites Oklahoma's September 2021 drought, which spread across nearly three-quarters of the state in three weeks.
The piece is a general climate-risk overview for the Midwest.
Flash droughts raise the risk of sudden yield losses in key grain areas with little warning, adding weather risk premium to corn and wheat. The article is general and does not signal an immediate price change.
grist.orgDiana KruzmanMay 16, 2022After 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.
