VOLATILITY from the El Niño weather pattern and China’s economic slowdown are forecast to have the largest impact on agricultural commodities in Asia next year, according to Rabobank’s Agri Commodity Market Outlook for 2016.
The report, titled ‘Bear with Grains, While Softs Lift Off’, predicts that as dry conditions linger into 2016 from one of the strongest El Niño events on record, this may constrain production of palm oil, sugar, coffee, and cocoa, and drive up prices.
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