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The IRI May climate briefing reports that central equatorial Pacific sea-surface temperature anomalies rose slightly to +0.4 to +0.5C, a borderline neutral-to-weak El Nino state. Key atmospheric signals such as weakened trade winds have not yet appeared, so the NOAA ENSO alert remains inactive.
El Nino odds easing slightly reduce the near-term risk of drought in Australia, Southeast Asia and India that could tighten wheat, corn and rice supplies. The effect on prices is modest because the forecast remains uncertain.
iri.columbia.eduMay 25, 2017After 224 past neutral weather events, Wheat (SRW) moved a median -0.1% over 5 sessions (46% higher; middle half -1.4% to +1.5%), and +0.4% over 20.
After 445 past neutral weather events, Corn moved a median +0.1% over 5 sessions (52% higher; middle half -1.4% to +1.6%), and +0.7% over 20.
After 31 past neutral weather events, Rough Rice moved a median -0.0% over 5 sessions (48% higher; middle half -2.1% to +2.1%), and -1.5% 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.
