Aug 01 2022
The agriculture markets have been packed with headline-grabbing events, with extreme price volatility for all major grains and oil seeds in the last two years. The possibility of a continued La Nina is seen adding to the uncertainty. La Nina, Spanish for little girl, is a climate pattern having a varying impact on agriculture globally.
Current forecasts see a 70% chance for the continuation of La Nina during the June-August 2022 season, and a 50%-60% chance for continuation beyond mid-2022. The ongoing La Nina coincides with the peak planting seasons in top grain and oilseed producing countries, bringing heightened uncertainty to weather forecasts as well as to output numbers. Another La Nina year can exacerbate crop supply concerns at a time when global grains and oilseed supplies are already limited due to various factors, including the Russia-Ukraine war.