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A study published this month in Nature Food by Stanford researchers including David Lobell examines how U.S. maize yields respond to drought. It finds that current yield-gain strategies work best in ideal weather and are increasingly sensitive to worsening drought.
Yield sensitivity to water storage in the Corn Belt has risen 55% since 1999.
Rising drought sensitivity raises the cost of maintaining yields under climate stress, a long-run supply risk for corn and the feed grains built on it. It is a research finding rather than a near-term supply shock, so the direct price effect is limited.
nasaharvest.orgWritten By NASA HarvestNov 26, 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.
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.
