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A once-a-century drought has lowered the water level of the Parana River, Argentina's main grains transport route. Farm exports are being reduced and logistics costs are rising, and meteorologists expect the trend to continue into next year.
Reduced river-borne exports cut Argentine supply to world markets and push up freight costs for soymeal and corn. The extended duration of the drought supports higher prices for these feed commodities.
reuters.comHugh BronsteinAug 12, 2021After 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, SOY 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, SBM moved a median +0.5% over 5 sessions (55% higher; middle half -1.6% to +2.7%), and +0.5% over 20.
Not enough comparable past events yet for a historical read.
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.
