Loading…
A PERC essay argues that financial instruments such as futures, options and newer weather-linked contracts can complement physical infrastructure in adapting to climate risk. It uses the 2012 drought as an example of how hedging and price signals can absorb losses from extreme weather.
Weather-risk hedging tools can help grain and feed buyers manage drought exposure, but the piece offers no direct supply or price signal for specific commodities.
perc.orgadminDec 13, 2016Not enough comparable past events yet for a historical read.
After 2,467 past weather events, Corn moved a median +0.1% over 5 sessions (51% higher; middle half -1.5% to +1.7%), and +0.6% over 20.
After 1,964 past weather events, Soybeans moved a median +0.1% over 5 sessions (51% higher; middle half -1.7% to +1.8%), and +0.3% 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.
