As summer comes to an end, farmers around the world are desperate for rain, with many having lost crops and livestock to dry conditions.
Australia is suffering from its worst drought in memory, which has devastated that country’s beef and wheat production.
Similarly, European wheat, corn and soybeans in Missouri, and even cotton in Texas are all suffering from hot and dry conditions. Longer term, shifting weather patterns could force producers to adapt, a process that could result in volatile commodity prices. An extreme example is the wheat market, which saw a massive swing in the last 10 weeks from $5.75 per bushel down under $4.50, only to rally back to $6.00 recently.