Loading…
Reuters reports that El Niño may bring dry weather to Asian farms while favoring American growers. Australian wheat, the world's second-largest wheat exporter, is expected to suffer from dryness, and palm oil and rice output is likely to suffer in Indonesia, Malaysia and Thailand.
Expected losses in Australian wheat and Southeast Asian palm oil and rice would reduce global supply and support prices. Favorable US conditions could limit the upside for US corn and soybeans.
reuters.comNaveen ThukralJun 1, 2023After 1,072 past bullish weather events, Wheat (SRW) moved a median +0.2% over 5 sessions (55% higher; middle half -1.4% to +2.3%), and +0.3% over 20.
After 181 past bullish weather events, Palm Oil moved a median +0.5% over 5 sessions (56% higher; middle half -0.9% to +1.9%), and +0.3% 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.
After 357 past bearish weather events, Corn moved a median -0.3% over 5 sessions (44% higher; middle half -2.2% to +1.3%), and -0.5% 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.
