Market Monitor May 2024

02 May 2024

Harvesting of maize and soybeans in the southern hemisphere is progressing, but lack of rain earlier in the season and high temperatures have constrained yields. In the northern hemisphere, winter crops also suffered from insufficient precipitations, while spring sowing is ongoing. Globally, record-high temperatures since the latter half of 2023 reflect the influences of the strong 2023-2024 El Niño and climate change. Heat extremes will very likely continue during 2024, impacting crop development and possibly constraining the yield potential. With global temperatures at unseen levels, the impact of a potential return of La Niña on agricultural production is uncertain. La Niña events have historically led to slightly lower than average global yields for soybeans and slightly higher than average ones for rice.