Triple-dip La Nina may further heighten supply issues in global agriculture markets

Published 2022년 9월 14일

Tridge summary

The article discusses the potential impact of the ongoing La Nina climate phenomenon, which is predicted to become a triple-dip La Nina, on the global agricultural market. This rare weather event, likely to extend into its third year, could cause significant supply issues for food commodities such as wheat, corn, and soybeans. The article focuses on the impact of La Nina on key agricultural regions like Brazil, Argentina, the US, and Australia, and highlights the varied effects on crop yields and planting conditions. In some areas, such as Brazil and Argentina, dry conditions are expected to reduce crop yields, while in Australia and Southeast Asia, above-average winter-spring rainfall could increase wheat production. However, in East Africa, the same condition could lead to deficit rainfall, exacerbating the ongoing drought and further tightening the global grains supply.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The ongoing La Nina climate phenomenon may extend into its third year in a rare event to become what is called a triple-dip La Nina. This is likely to extend the uncertainty currently prevailing across agriculture markets as supply estimates for various food commodities faltered this year, largely driven by weather adversities in top producing countries. Prices of wheat, corn and soybeans have remained volatile with an upward edge. Weather, although not the only factor, has been a major driver of these volatilities. La Nina is likely to continue through the Northern Hemisphere winter 2022-23, with a 91% chance in September-November and decreasing to a 54% chance in January-March 2023, making it the first triple-dip La Nina of this century, according to latest forecasts. The phenomenon has varying impacts on agriculture across the globe and it particularly impacts Brazil, Argentina, the US and Australia — key suppliers of corn, soybeans and wheat. Corn, soybeans in Brazil The ...

Source: Hellenic Shipping News