This year's El Niño phenomenon is likely to be the strongest in at least 70 years, further increasing the risk that global agricultural markets will be disrupted on a large scale. The World Meteorological Organization, an agency under the United Nations, issued the latest notice on September 3, confirming that the El Niño phenomenon has formed and will continue to increase. It is expected to develop into a superscale event, which will have a major impact on global precipitation and temperature patterns, and related extreme weather risks will continue until 2027. “The impact of El Niño is already being felt.” Rabobank analysts wrote in a report. These analysts said that concerns about the impact of El Niño are driving a range of commodity prices higher. Barclays analysts wrote in a report that the El Niño phenomenon was unusually strong this year and could cause further disruptions. They said, “Historically, El Niño events are often associated with sharp fluctuations in weather-sensitive markets.” HSBC analysts sounded the alarm in a report last week, pointing out that the tightening supply of grain, the El Niño phenomenon, the blockage of major maritime shipping routes, and the resulting supply squeeze are driving up grain prices.

This year's El Niño phenomenon is likely to be the strongest in at least 70 years, further increasing the risk that global agricultural markets will be disrupted on a large scale. The World Meteorological Organization, an agency under the United Nations, issued the latest notice on September 3, confirming that the El Niño phenomenon has formed and will continue to increase. It is expected to develop into a superscale event, which will have a major impact on global precipitation and temperature patterns, and related extreme weather risks will continue until 2027. “The impact of El Niño is already being felt.” Rabobank analysts wrote in a report. These analysts said that concerns about the impact of El Niño are driving a range of commodity prices higher. Barclays analysts wrote in a report that the El Niño phenomenon was unusually strong this year and could cause further disruptions. They said, “Historically, El Niño events are often associated with sharp fluctuations in weather-sensitive markets.” HSBC analysts sounded the alarm in a report last week, pointing out that the tightening supply of grain, the El Niño phenomenon, the blockage of major maritime shipping routes, and the resulting supply squeeze are driving up grain prices.