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A University of Missouri economist says recent weather events, including the Iowa derecho and dryness, may not produce a large sustained rise in commodity prices. He notes USDA still projects corn at nearly 2.8 billion bushels with ending stocks above year-ago levels.
Ample projected stocks cap the durability of weather-driven rallies, so feed buyers should expect short-lived price spikes rather than a sustained trend.
brownfieldagnews.comAug 27, 2020After 445 past neutral weather events, Corn moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.6%), and +0.7% over 20.
After 324 past neutral weather events, Soybeans moved a median +0.0% over 5 sessions (52% higher; middle half -1.4% to +1.7%), and +0.7% 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.
