South America Grain Output Threatened by La Nina, Oil World Says

South American grain and oilseed production may be in jeopardy from the formation of a La Nina weather pattern, which might curb rainfall in parts of Brazil and Argentina, Oil World said.

Dry weather since April in central Brazil may prevent seedlings from taking root when sowing starts in Mato Grosso, Mato Grosso do Sul and Goias states, the Hamburg-based researcher said in a report today. The weather pattern may bring rain to the area in December, too late for crops, it said.