Here are a few commodities worth betting on in 2016

If bears stomp the agro-commodity markets in 2016, blame it on the weather or currency. Analysts say weather problems paint a bright price outlook for coffee and sugar. Grains and oilseeds are likely to have stable prospects.

Overall in 2016 globally, we will see grains continue to trade at around current price levels, and we expect some upside on soft commodities such as sugar and coffee, says Stefan Vogel, Global Head of Rabobank (ACMR).

Biggest Shakers for Asia

-Volatility from El Niño
-China’s economic slowdown

Current Global Status

-Record production of grains, oilseeds from South America
-Decent crop levels globally

Weather’s Role

-El Niño affected sugar, cocoa, palm oil, Robusta coffee crops
-El Niño expected to gradually weaken in Q1 2016
-Winter weather in Russia, Ukraine and the US will be key driver for grains and oilseeds, although not directly linked to El Niño

Forex Impact

-US dollar predicted to find additional strength in 2016
-This will create stock building of grain, oilseeds in the US
-Currency weakness in agri-producing regions will alter competitiveness of production and trade flows
Here’s what the Rabobank’s Agri Commodity Market Outlook for 2016 says: