Extreme weather, food inflation: a potential entry point for agricultural commodities
You don't need to be a farmer or an economist to understand that weather events can have a dramatic impact on agricultural production from one year to the next. Much of the country has received above-average rainfall in the past few months and there has been widespread flooding as a result. The Mississippi River, for example, is currently experiencing a 100-year flood event.
If you live in most parts of the country – such as the West Coast, the East Coast, or the Midwest, you might not realize that Texas and the greater Southwest have scarcely received any rain at all this year. In fact, much of Texas is currently suffering through an "exceptional" drought – the highest level achievable. In other words, if the drought in Texas were a hurricane it would be a "Category 5." A drought simply doesn't get any worse than this and the present conditions