Mother Nature is fond of throwing curveballs. The latest round of wild weather has included disruptive hurricanes in the United States and crop-damaging typhoons in China.
Those events have affected grain prices this week, but that’s not all. Trade optimism is really high right now, for starters. And many experts still have lingering doubts over the true production potential of this year’s corn and soybean crops as quality continues to erode.
There’s also drought to consider. Thirty-four percent of the Midwest is now experiencing some level of drought – most notably Iowa, northern Illinois and northern Indiana. It’s been a troubling trend throughout the summer, but there’s a silver lining to dry conditions now that it’s September. We take a closer look and discuss why.
Listen to the latest Midweek Markets podcast for September 16, 2020: