World: El Niño raises agricultural commodity prices

São Paulo, 10/20/2023 - Agricultural commodity prices are already feeling the effects of El Niño, Commerzbank said in a comment sent to clients. The event causes climate changes ranging from severe drought to heavy rains and can have implications in different regions of the world. The German bank highlighted that sugar, coffee and cocoa are some of the products most affected by the phenomenon currently. Sugar is one of the worst-hit commodities because Thailand, normally the second-largest exporter, "is likely to face major problems in the (sugar cane) harvest due to the drought," Commerzbank said. Furthermore, in Brazil, the leader in production and shipments, rains can create logistical problems. The weakening of the monsoon in India, the second largest producer, could lead to lower production, resulting in fewer sales abroad. "For this reason, restrictions on exports have already been introduced and recently extended until further notice. All of these factors have pushed the ...