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La Nina weather pattern will bring some "fun" to grain markets - if volatility and a price shock is your idea of fun

By: Mark Rzepczynski
Harvest Exchange
January 12, 2018

La Nina weather pattern will bring some "fun" to grain markets - if volatility and a price shock is your idea of fun

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There are seasonal weather patterns that will ebb and flow during the year bringing volatility to agricultural markets at regular times. However, the longer-term impact on supply can at times be limited. There is noise around production numbers but inventory can serve as a cushion.

Longer-term weather patterns like the El Nina Southern Oscillation (ENSO) can have a much greater impact and cause significant price dislocations. The weather impact may last for a full year or more. La Nina,  a cooling pattern in the Pacific Ocean,  has returned this winter and it can have a significant impact on agriculture markets if it continues into spring and summer. 

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Originally Published at: La Nina weather pattern will bring some "fun" to grain markets - if volatility and a price shock is your idea of fun