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Mexico's drought has become severe enough to contribute to the central bank's hawkish turn, according to a Bloomberg analysis. The article ties dry conditions to inflation pressures that pushed Banxico toward tightening.
Drought in Mexico reduces domestic crop output and raises food inflation, which increases Mexico's reliance on imported corn, sorghum and soybean meal and supports those prices.
bnnbloomberg.caGerardo Esquivel
, Photographer: Brett Gundlock/BloombergJun 29, 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.
Not enough comparable past events yet for a historical read.
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.
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.
