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A Mongabay report says rainfall has been well below average in Brazil's center-west, south and parts of the southeast over recent years. Agriculture is suffering drastic production losses, and water supply and hydropower are also affected.
The report links Amazon deforestation to reduced regional rainfall.
Persistent drought in Brazil's main grain and livestock regions raises supply risk for corn, soybeans and feed ingredients. The story is background on structural climate risk rather than a new supply shock, so its direct price effect is limited.
news.mongabay.comXavier BartaburuAug 7, 2020After 1,079 past bullish weather events, SOY 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.
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.
