Grain Prices are Expected to Drop Further on Less Severe El Nino Weather

Bloomberg reported that Olam International (SGX:O32) expects grain and oilseed prices to drop further as El Nino weather won’t be as harmful to harvest as previously feared.
As quoted in the market news:

Meteorologists from Australia to the U.S., who have predicted the current El Nino may become one of the strongest ever recorded, matching the 1997-98 event that ruined crops with droughts and floods. El Nino can affect weather worldwide — and hence, crops — by baking Asia, altering rainfall across South America and bringing cooler summers to North America.
Verghese, who bases his view on intelligence from farmers and the company’s own meteorological model, said the current El Nino was unlikely to match the destructive impact on crops of almost two decades ago.
“We are bearish,” Olam Chief Executive Officer Sunny Verghese said in an interview in London on Tuesday. “El Nino will not be as severe” as many in the agricultural commodities market expect, he added.

Click here to read the full Bloomberg report.