This is also good news for sugar bulls who have been anxiously awaiting word of a strong and wet monsoon season to affect S. Asian harvests.
Australian Bureau: Pacific Indicators Point To El Nino
Climate indicators in the Pacific Basin are consistent with the early stages of a developing El Nino episode, with computer forecasts increasingly showing this is a “distinct possibility” later this year, the Australian Government’s Bureau of Meteorology reported Wednesday.
“The odds of an El Nino are now thought to be above 50%, which is more than double the normal risk of an event,” the bureau said in a regular review of Pacific climate indicators. El Nino events are usually, but not always, associated with below-average rainfall in the calendar second half across much of southern and inland eastern Australia, it said.
Source: CME News For Tomorrow
Another adverse sign for Southeast Australian rainfall is a recent trend to positive values in the Indian Ocean Dipole (IOD), the bureau reported.