To the commodities market, soy bean is getting a lift from higher demand from China's hog farms. But those farms may need to stock up on the beans soon because analysts expect prices to skyrocket due to extreme weather conditions.
 
The world's extreme weather is far from ending. The strongest El Nino in the past 30 years is almost over but there's a 60 percent chance La Nina will strike before the end of this year. That means global agriculture will continue to suffer from extreme weather conditions for another year. Soybeans are expected to be among the worst-hit crops.
 
Commodities analysts say that La Nina will bring drought to the Americas. That will affect all of the key soybeans growth stages in the United States, as well as in Brazil and Argentina.

That's a recipe for a surge in soybean prices. For major buyers like China, analysts say it is crucial to hedge against that risk now!

"American soybean production is in the delicate growth period right now, which is key for this year's harvest. Commodities and futures investors usually do speculation in July and August based on the weather outlook. This year is the year of El Nino, which means investors are even more sensitive to changes in weather, which means growing volatility in the market," said Wang Xiang, senior analysts of Everbright Securities.

In fact, commodity prices have already been on the rise, thanks to increasing imports from China. Soybean futures on Chicago's CBOT closed higher on Wednesday, marking a two-day winning streak. But one commodities analyst is taking a defensive approach.

"I don't think major soybean buyers will make any new orders at this point, if they have had enough soybean inventories. The prices of soybeans are already at high levels compared with the past two years, and the prices are likely to roller coaster given the weather concerns. We have to be cautious and stay put," said Zhang Xiangjie, commodities futures consultant. 

Sentiment is split on other major agriculture producers. Indian authorities expect a better monsoon season to be brought by La Nina. That bodes well for India's economic output.

Meanwhile, Australia is pricing the weather risks in when making economic forecasts. Local weather research suggests that La Nina conditions could become as strong as the record La Nina episode in 2010-12. That means the outlook for next year's global harvest will be as murky as the rainstorms.