# Drought and the Mighty Mississippi | PERC

> 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.

- Date: 2016-12-13 · published 2016-12-13T12:00:00.000Z
- Category: weather · region US · magnitude low
- Page: https://feedsoft.ai/events/73355-drought-and-the-mighty-mississippi-perc
- Commodities: [Barge Freight (St. Louis)](https://feedsoft.ai/c/BARGE.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

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.

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| CORN | 2021-09-10 | [La Niña Redux and the Present Drought](https://feedsoft.ai/events/44992-la-nina-redux-and-the-present-drought.md) | +1.1% | -1.9% |
| CORN | 2023-11-16 | [Fall Rains Ease Midwest Drought and Replenish Mississippi River - Farmer Mac](https://feedsoft.ai/events/33358-fall-rains-ease-midwest-drought-and-replenish-mississippi-river-farmer-mac.md) | +0.0% | -2.2% |
| CORN | 2025-10-16 | [Drought lowering Mississippi River levels again, disrupting shipping](https://feedsoft.ai/events/16420-drought-lowering-mississippi-river-levels-again-disrupting-shipping.md) | -0.0% | +2.8% |
| CORN | 2026-09-10 | [Drought expands in the lower Midwest - Pro Farmer](https://feedsoft.ai/events/12961-drought-expands-in-the-lower-midwest-pro-farmer.md) | +4.3% | +1.1% |
| CORN | 2023-06-20 | [Dry Weather and Drought in the Midwest, Middle-June 2023 - farmdoc daily](https://feedsoft.ai/events/13271-dry-weather-and-drought-in-the-midwest-middle-june-2023-farmdoc-daily.md) | -1.6% | -13.3% |
| SOY | 2021-09-10 | [La Niña Redux and the Present Drought](https://feedsoft.ai/events/44992-la-nina-redux-and-the-present-drought.md) | +3.0% | -0.9% |
| SOY | 2025-10-16 | [Drought lowering Mississippi River levels again, disrupting shipping](https://feedsoft.ai/events/16420-drought-lowering-mississippi-river-levels-again-disrupting-shipping.md) | +2.8% | +11.3% |
| SOY | 2026-09-10 | [Drought expands in the lower Midwest - Pro Farmer](https://feedsoft.ai/events/12961-drought-expands-in-the-lower-midwest-pro-farmer.md) | +1.9% | +0.2% |

## Sources

- perc.org: https://www.perc.org/2016/12/13/drought-and-the-mighty-mississippi/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.