Opportunities within a storm: El Niño and the outlook for agriculture - ETFSecurities exclusive

Opportunities within a storm: El Niño and the outlook for agriculture - ETFSecurities exclusive. Drought and irregular weather patterns have sent the price of grains and soft commodities higher this year. While in some instances we believe that prices have over-reacted to the weather-related supply shock, in others there is potential for further gains. In recent weeks meteorologists have raised the probability of an El Niño event taking place later this year with some estimates putting the probability as high as 75%. El Niño has the reputation for being a powerful catalyst to driving weather extremes such as floods and droughts in different parts of the world. Coffee, corn and soybean could see better growing conditions in key areas, potentially putting downward pressure on price. Cocoa and sugar would struggle to grow in drought conditions, potentially lifting their price. Full ETFSecurities El Niño research report here: (VIEW LINK)


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