After several consecutive years of high yields, the prospects for Brazil's soybean and corn harvests this year may be threatened by the El Nino phenomenon. This climate phenomenon, known as El Nino, is related to high Pacific surface water temperatures and often results in significant variations in rainfall patterns across Brazil.

Last week, CONAB, the Brazilian national commodity supply company, predicted that Brazil will produce 162 million tons of soybeans in 2023/24, breaking the historical record of 154.6 million tons set last year. The corn production forecast for Brazil in 2023/24 is 119.4 million tons, a year-on-year decrease of 9.5%, but it is still one of the highest harvests in a decade.