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ADM expects U.S. flooding and severe winter weather to cut its first-quarter operating profit by $50 million to $60 million. Floods have idled ethanol plants, including its Columbus, Nebraska corn complex, slowed rail and barge shipments, and flooded grain storage.
Rivers have been swollen since December, limiting barge movements and port activity.
Idled ethanol plants reduce domestic corn grind and cut demand for corn, which is bearish for corn futures. Barge and rail disruptions raise freight costs and slow shipments, which widens regional basis and supports barge freight rates.
grainews.caReuters, GFM Network NewsMar 26, 2019
postbulletin.comAdam Belz Tribune News ServiceMar 27, 2019After 363 past bearish weather events, Soybeans moved a median -0.6% over 5 sessions (42% higher; middle half -2.5% to +1.1%), and -0.2% over 20.
After 357 past bearish weather events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -2.2% to +1.3%), and -0.5% 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.
