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The National Provisioner says 2021 feed ingredient prices will be among the highest in a decade, citing drought in parts of the Corn Belt and Southwest, high oil prices, and tight carryover after poor 2019 crops. Brazil's crop conditions are also cited as a factor.
The author warns that continued dryness in July could produce a more severe situation.
Low corn and soybean carryover leaves little supply cushion, so any further drought or production shortfall would likely push feed grain and meal prices higher.
provisioneronline.comDan EmeryAug 19, 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, 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.
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.
