(Reuters) – There is a 71% chance of La Nina weather conditions developing during the September to November period, a U.S. government forecaster said on Thursday.

The weather conditions are expected to persist through the January-March period next year, the National Weather Service’s Climate Prediction Center (CPC) said in its monthly forecast.

WHY IT’S IMPORTANT

La Nina, a climate pattern that begins with colder-than-normal ocean temperatures in the central and eastern equatorial Pacific, is linked to both floods and drought, as well as an increase in the frequency of hurricanes in the Caribbean.

La Nina is expected to bring less rain, worsening drought conditions which could affect agriculture globally.

CONTEXT

The cycle between El Nino, La Nina, and a neutral phase typically lasts two to seven years.

Earlier this week, Japan’s weather bureau said that there was a 60% chance of a La Nina phenomenon occurring from now until winter in the Northern Hemisphere.

Brazilian soybean farmers could produce 14% more in the 2024/2025 season, compared with the previous one, a Reuters poll showed, as expectations of more rain in the last quarter of the year rise.

KEY QUOTES

© Reuters. FILE PHOTO: A tero drinks water from a puddle in the Navarro lagoon, which dried up due to the climate phenomenon La Nina, in Navarro, in Buenos Aires province, Argentina December 5, 2022. REUTERS/Agustin Marcarian/File Photo

“The agricultural and livestock sectors are clearly most at risk from the effects of La Niña with many of these areas key for the production for crops such as soybeans and corn,” David Oxley, head of climate economics at Capital Economics said. 

“The typical La Nina may not materialize if the signal is weak. However, the main area to watch for dryness concerns and crop production reductions is the crop lands of Argentina, Uruguay and southeast Brazil during their summer,” AccuWeather’s lead international forecaster Jason Nicholls said.




Source link

Best Brokers

Unmatched trading fees, generous bonuses, top notch Regulation Frame.

T&Cs Apply

Risk disclosure: All investments involve a degree of risk of some kind. Trading financial derivative products comes with a high risk of losing money rapidly due to leverage.

Top-Tier Regulations. Unmatched Spreads and Commissions. Trading View is available.

T&Cs Apply

Financial Spread Trades and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84.7% of retail investor accounts lose money when trading CFDs with this provider.

Modern and Intuitive Interfaces, Solid Regulatory Frame, and excellent Trading Fees.

T&Cs Apply
Risk warning: Trading derivatives is highly speculative, carries an inherent risk of loss and is not suitable for all investors. Before trading, you are strongly advised to read and ensure that you understand the relevant risk disclosures and warnings.

Highly Regulated. Low Spreads and Commissions. Vast Account Options.

T&Cs Apply

Risk Warning: Trading derivatives carries significant risks. It is not suitable for all investors and if you are a professional client, you could lose substantially more than your initial investment.