Photo: NASA MSFC
This June, the weather system that has contributed to the global agricultural commodity boom comes to an end, according to Bloomberg.With La Nina expiring, we’ll no longer have the weather to blame for events like these (though we should still expect a strong hurricane season).
Rain linked to La Nina halted coal shipments and swamped cotton crops in Queensland earlier this year, after wet weather last year cut sugar output and downgraded east Australian wheat quality. La Nina has soaked rubber plantations in Southeast Asia, disrupted Indonesian tin output and brought dry conditions to corn and soybean areas in Argentina.
For those who think the only thing driving agricultural prices higher is liquidity flowing from the Fed and other central banks, this is your big chance to prove your point.