The El Niño may bring food price increases

The climate phenomenon called El Niño is ikely to occur this year with a two-third probability. It can cause significant increases in food prices – tozsdeforum.hu wrote.

The El Niño, (when the wind slows down or changes direction in the equatorial regions of the Pacific Ocean) occurs cyclically every 2-7 years. It heats up vast areas of water, making forecasts uncertain. The prices of products like coffee, soybeans or nickel may increase significantly. (The biggest nickel exporter country, Indonesia should decline its water-intensive of nickel production because of the drought.) The rise in prices caused by the El Niño would only bring more oil to the fire. The commodity futures contracts are suggesting that investors expect an increase in ther price of the key agricultural products. (tozsdeforum.hu, Bartha Ádám)