The article says forecasters see more than an 80% chance that this year’s El Niño will be stronger than the 2023–24 event, with potential consequences for agricultural production and commodity prices. It notes that the most serious agricultural effects often emerge six to twelve months after the phenomenon peaks and discusses investment products tied to agricultural commodities and companies.
A stronger El Niño raises the risk of weather-related crop losses and tighter supply, which could support prices for exposed crops. The timing and size of any price effect depend on regional growing conditions.
After 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 1,072 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 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.