La Niņa Could Trigger a Rebound in Wheat and Corn Prices Amidst Bearish Trends by Amit Gupta, Kedia Advisory
![](https://portfolio.investmentguruindia.com/uploads/news/wheat22.jpg)
Follow us Now on Telegram ! Get daily 10 - 12 important updates on Business, Finance and Investment. Join our Telegram Channel
https://t.me/InvestmentGuruIndiacom
Download Telegram App before Joining the Channel
The potential emergence of La Niña later this year may disrupt the ongoing bearish trends in global wheat and corn markets. Prices for both cereals have hit four-year lows, but past La Niña events have significantly reduced harvests, especially in the US. Current projections indicate a moderate La Niña could emerge by October-December 2024, potentially driving prices higher if agricultural outputs are affected.
Highlights
ENSO Impact on Prices: The emerging La Niña, part of the ENSO cycle, could act as a catalyst for rising global wheat and corn prices, amidst the current bearish market conditions.
Current Price Trends: Wheat and corn prices on the Chicago Board of Trade are at a four-year low, with wheat at $5.24/bushel and corn at $3.80/bushel, reflecting over 20% decline year-on-year.
Previous La Niña Effect: The last La Niña (2022-23) led to significant drops in US corn (9.1%) and wheat (9.5%) production, underscoring the potential impact of another La Niña event.
La Niña Forecast for 2024: There is a 70% chance that La Niña will develop during October-December 2024, with a 50% probability of it becoming a moderate event, which could influence agricultural outputs.
US Production Outlook: The USDA has projected ample supplies for wheat and corn during the 2024-25 season, with expected increases in US corn production to 15.1 billion bushels, signaling a bearish market.
BMI Price Forecasts: BMI maintains a bearish outlook for both wheat and corn prices for the remainder of 2024, with wheat forecasted at an average of $6.05/bushel and corn at $4.30/bushel.
Conclusion
As global markets brace for the possibility of La Niña, wheat and corn prices remain under significant bearish pressure. While ample supply projections for the 2024-25 season suggest continued price declines, the unpredictable nature of La Niña could shift market dynamics. Should the weather pattern intensify, reduced harvests in key producing regions may catalyze a price rebound, warranting close monitoring in the coming months.
Above views are of the author and not of the website kindly read disclaimer
![](https://portfolio.investmentguruindia.com/uploads/news/KaranAdani025.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Axis Securities Ltd.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Geojit Financial Services.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/hydroelectric025.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Dollar retures 2.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/oil02365.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Geojit Financial Services.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Disney_123.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/sbi025.jpg)
![](https://portfolio.investmentguruindia.com/uploads/news/Paytm_159.jpg)
Tag News
![](https://portfolio.investmentguruindia.com/uploads/news/Rupee28.jpg)
Quote on Rupee from Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securi...
![Market Quote : A consolidation in the US 10yr bond yield and an inflow of FIIs kept the domestic market sentiment optimistic says Vinod Nair, Head of Research, Geojit Financial Services](https://portfolio.investmentguruindia.com/uploads/news/Broker _14.jpg)
![Quote on Gold from Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities](https://portfolio.investmentguruindia.com/uploads/news/Gold 1.jpg)
![Daily Market Analysis : The outlook suggests further consolidation in the index, but the bias remains positive Says Mr. Ajit Mishra, Religare Broking Ltd](https://portfolio.investmentguruindia.com/uploads/news/Ajit Mishra.jpg)
More News
![](https://portfolio.investmentguruindia.com/uploads/news/Joseph Thomas.jpg)
Perspective on Gold by Dr. Joseph Thomas, Head of Research, Emkay Wealth Management
![Perspective by Ms.Riya Singh - Research Analyst, Commodities and Currency , Emkay Global Financial Services Ltd](https://portfolio.investmentguruindia.com/uploads/news/copper.jpg)
![Quote on Gold from Mr. Pranav Mer, Vice President, EBG - Commodity & Currency Research, JM Financial Services Ltd](https://portfolio.investmentguruindia.com/uploads/news/Pranav Mer, Vice President, EBG - Commodity & Currency Research.jpg)
![India`s Oilmeal Exports Slip by 2.3% Amid Ricebran Ban and Market Uncertainties By Amit Gupta,Kedia Advisory](https://portfolio.investmentguruindia.com/uploads/news/soyabean.jpg)