Recent expansion of exceptional (D4) drought across the Southern Plains and Southeast has shaped trader focus for the week of September 29, 2026. The U.S. Drought Monitor, produced by the National Drought Mitigation Center with NOAA, USDA, and NASA input, reported D4 conditions as of September 22 primarily in northern Texas, western and southern Oklahoma, parts of Arkansas, and northern North Carolina, driven by persistent high pressure, above-normal temperatures, and below-average precipitation. This aligns with the contiguous U.S. experiencing its warmest June–August on record. Drought improved in the West and northern Plains from beneficial rainfall, while the South saw further degradation. The next USDM update, with data through late September, will determine final state-level D4 designations and resolve the market.