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Focus Economics says the El Niño pattern will restrain agricultural output in 2024, and that La Niña has a 55% likelihood of developing in June-August. It notes soft commodity prices rose 12.3% in 2023 and that India's monsoon was the driest in five years.
Expectations of weaker output from weather patterns support higher commodity price forecasts through 2024. Feed costs could stay elevated if the forecast tightens supply.
focus-economics.comGiovanni SbattellaFeb 19, 2024After 1,465 past bullish weather events, Corn moved a median +0.2% over 5 sessions (54% higher; middle half -1.4% to +1.9%), and +0.9% over 20.
After 1,079 past bullish weather events, Soybeans moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% over 20.
After 179 past bullish weather events, Rough Rice moved a median +0.4% over 5 sessions (55% higher; middle half -1.4% to +2.5%), and +2.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
