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Farm Policy News reports that drought covering 75% of Iowa is stressing corn and soybeans, with about 40% of the state in severe drought. Iowa averaged 2.4 inches of June rain through June 17 against a historical average of 5.02 inches, making it one of the driest Junes in 129 years of records.
Temperatures reached 100 degrees in parts of the state.
Iowa is the top corn-producing state, so a severe and widespread drought there threatens yields and supports corn and soybean prices, even though prices fell that week.
farmpolicynews.illinois.eduKeith GoodJun 18, 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.
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.
