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DTN reports that the strong La Niña event, with a three-month ONI of minus 1.2 for September through November 2020, is historically linked to below-trend Argentine corn and soybean yields. Corn and soybeans had rallied to multiyear highs over the winter on fears of lower South American output.
Historical La Niña yield losses in Argentina support the supply-risk premium in soybeans, corn and meal, so buyers face firm prices if dryness materializes.
dtnpf.comBryce AndersonFeb 1, 2021After 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 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 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.
