What if Grain-price slump pressures US and EU farm-income and ag-lending?
A multi-crop glut drives farm-gate grain prices below cost, squeezing US and EU farm incomes, equipment demand and agricultural credit quality.
26%
our model probability over 6–18 months
prediction markets — wisdom of the crowd
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◎ Empirically anchored 26%· 90% range 4–48%· 40 analogues · measured class deflation 44% in 18 mo · 3% held back for the unknownhow we built this number — every step
Measured class rate — deflation ≈0.3895/yr → 44% in 18 mo44%
Analyst prior · editorial share 63% of the class28%
Pooled · weight 87%27%
Crowd — no liquid market—
Reserve 3% · no extremizing (×1.0)27%
Published26%
The class rate is measured from our dated, sourced event library (decade-normalized Poisson — the full table is public at base_rates.json). The variant’s share within its class is the analyst’s editorial call, published so you can audit it. A wider range means thinner precedent. Full recipe: methodology · scored at Reality Check.
The butterfly cascade
How this trigger trickles across markets, left → right — the root shock, its first‑order moves, then the ripple effects. Drag any node; tap a market for its real price history.
Resolution timeline — how this probability is moving
Our model's odds (gold) over time vs the crowd's (Polymarket, blue), from the past toward the 6–18 months horizon. Each dot is a real macro event that nudged the probability — green pushed it up, red pushed it down. Tap a dot for the source. The gold path is an illustrative reconstruction anchored to today's estimate — real dated events, not a live re-estimate history.
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What it would mean
If this plays out, it is a mixed shock. A multi-crop glut drives farm-gate grain prices below cost, squeezing US and EU farm incomes, equipment demand and agricultural credit quality. The trigger decomposes into signed root‑shocks — Corn ▼ · Consumer spending ▼ · Credit spreads ▲ · Food inflation ▼ — which propagate through our causal graph to the markets below.
If it happens — the markets it would move
Biggest moves first. Projected moves are cascade-model priors; hist A–B% = what comparable past events actually did (measured abnormal returns), and model prior · unmeasured marks markets with no analogue backing yet. Tap any market for its price history.
Market
Class
Projected move
1
CornCORNon Hyperliquid📈 chart
Commodity
▼ -0.4%
hist -1.67–+0.41% · other way -1.35% (n=10)
2
High-yield creditHYG📈 chart
Rate
▼ -0.2%
hist -0.5–+0.07% · other way +0.25% (n=10)
Probable recommendation
If the scenario above plays out, the probable cross‑asset positioning → a scenario‑conditional read, not personalized investment advice
For a common-man portfolio: Mixed for a typical portfolio — the move is more about rotation than direction. Favour the winners over the losers below rather than net exposure.
Also moves (not yet on Hyperliquid): High-yield credit -0.2%
Historical precedent — what analogous events actually did
Across 40 analogous events (overlap‑weighted), as abnormal returns — market beta stripped, so it's the event's own effect, not the market backdrop. Shown at 20 days (persistent) and 5 days (immediate); ↺ fades = the two horizons disagree. Confidence = consistency × sample × significance.
First Republic Bank seized and sold to JPMorgan 2023-05↗Regional-bank panic deepens after Signature seizure 2023-03↗Kaisa Group offshore default 2021-12↗SNB introduces negative interest rates 2014-12↗HYG record outflows in 2014 high-yield rout 2014-10↗Mt. Gox collapse 2014-02↗Mt. Gox halts withdrawals 2014-02↗Cyprus deposit bail-in 2013-03↗Spain requests EUR100bn bank bailout 2012-06↗Bankia nationalised in Spain's banking crisis 2012-05↗Portugal requests EU-IMF bailout 2011-04↗Greece first EU/IMF bailout 2010-05↗Greece requests EU/IMF bailout 2010-04↗Anglo Irish Bank nationalisation 2009-01↗Fannie Mae and Freddie Mac conservatorship 2008-09↗IndyMac Bank seized by the Office of Thrift Supervision 2008-07↗Northern Rock bank run 2007-09↗American Home Mortgage bankruptcy 2007-08↗Bear Stearns freezes redemptions on subprime hedge funds 2007-06↗New Century Financial bankruptcy 2007-04↗Turkey lets the lira float 2001-02↗Mexico $50bn international rescue package 1995-01↗Hong Kong Stock Exchange four-day closure after Black Monday 1987-10↗Penn Square Bank failure 1982-07↗Gold tops $4,000 and silver spikes past $50 in historic squeeze 2025-10↗Israel strikes Iran — Operation Rising Lion 2025-06↗China retaliates to Liberation Day: 34% tariffs + rare-earth controls 2025-04↗Gold tops $3,000 for the first time amid tariff and rate-cut fears 2025-03↗Tesla shares crater on DOGE political backlash and Europe sales collapse 2025-03↗TSMC slumps as DeepSeek roils AI-chip demand assumptions 2025-02↗Micron's weak FQ2 guidance sparks a sharp December selloff 2024-12↗Henry Hub natural gas hits a 25-year low amid record US production 2024-11↗ASML bookings-miss crash 2024-10↗October 2024 Iranian ballistic-missile attack on Israel 2024-10↗Waha hub natural gas prices crash to record negative on Permian glut 2024-08↗Gold tops $2,500 for the first time on Fed rate-cut bets 2024-08↗Nikkei 225 record single-day rebound 2024-08↗Nikkei 225 worst single-day crash since 1987 2024-08↗KOSPI biggest-ever point loss triggers circuit breaker 2024-08↗VIX third-highest spike on record 2024-08↗