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A NASA Science image of the day, dated December 14, 2020, shows drought across about half of the continental United States. About a third of the country faced extreme or exceptional drought by early December, with conditions spreading into the Great Plains and Texas.
NASA describes the event as part of a multi-decade pattern of drought in the West.
Drought spreading into the Plains raises concern about yields for US corn and sorghum next season. The market has already priced in much of the dryness, so the effect is gradual rather than immediate.
science.nasa.govNASA Earth ObservatoryDec 14, 2020After 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.
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.
