Corn will lead the advance in grains and oilseeds, outperforming wheat, in the fourth quarter as La Nina threatens to parch crops in Argentina and Brazil, curbing supply and draining inventories, Rabobank Groep NV said.
China, the world’s second-largest corn user, will probably delay purchases after the worst U.S. drought in half a century drove prices to a record, said UBS AG.
China may become the world’s largest corn importer in five years as pork and chicken production increases, according to Rabobank Groep NV.
Copper, iron ore and beef are likely to benefit from rising demand in Japan as the country recovers from a record earthquake and tsunami that wiped away towns and triggered a nuclear crisis.
Sugar price prospects are “skewed to the upside” because of wet weather in Brazil, the world’s biggest producer, and a lack of rain in second-ranking India, according to UBS AG.
Milling-wheat exports from Australia, the fourth-largest shipper, may drop to the lowest level in three years because of drought in the country’s west and rain damage in eastern states.
"This clearly reduces the weather risk to east coast Australian crops as we approach the all-important spring finishing period."
- Wayne Gordon on Jul 29, 2014
UBS’s Gordon Says Drought Having Massive Impact