El Nino's Grip on Commodity Markets Tightens Amid Global Food Price Surge
El Nino is intensifying in the Pacific, and its effects are being felt across commodity markets. According to the World Meteorological Organization, there's an almost certain chance that El Nino will persist through February.
The pattern redistributes heat and moisture far beyond the Pacific, altering rainfall, drought, heat, and storm patterns across regions. Corn prices have climbed by roughly a third since late June, while sugar has gained almost a quarter since late July, as reported by The Wall Street Journal.
India is particularly sensitive to El Nino's effects, with rainfall coming in 35% below normal in June and staying weak in August. This has left crops like cotton, soybeans, corn, and rice exposed during key growing stages.
Other regions may benefit from El Nino's effects, however. Argentina is expected to receive wetter conditions, which could support its 2026-27 growing season. During the intense 2015-16 El Nino, Argentina produced its second-largest soybean crop on record, while corn yields came in 7% above the previous decade's average.