Loading…
The World Meteorological Organization has strengthened its support to governments and stakeholders to prepare for La Niña. It says the event has matured and is expected to peak in December or January, with a 95% probability of continuing through March 2021.
The agency notes that La Niña affects temperatures, precipitation and storm patterns in many regions.
A matured La Niña raises the risk of drought in South American grain belts and affects Asian palm oil output. This adds weather risk premium to feed commodities, though the WMO release itself contains no new crop estimates.
wmo.intDec 23, 2020After 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, SOY moved a median +0.3% over 5 sessions (54% higher; middle half -1.4% to +2.0%), and +0.9% 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.
