El Niño Phenomenon

Introduction: In the world of commodity investing, few stories are as compelling as the one currently unfolding in the cocoa market. Cocoa, the key ingredient in our beloved chocolate, has been facing a series of challenges, and the latest twist in the tale comes in the form of El Nino. In this blog post, we’ll explore why cocoa may have more upside potential ahead, driven by the looming El Nino event and its potential impact on global production. El Nino’s Return: El Nino, a climate phenomenon known for its disruptive…

As weather patterns continue to astonish the world, a term frequently thrown around in the meteorological arena is “El Niño.” With the recent announcement from the World Meteorological Organization (WMO) highlighting a 90% probability of El Niño continuing through the latter half of 2023, questions arise on its implications for commodities. Let’s dive into understanding the phenomenon and its consequential ripple effect on global commodities. Understanding El Niño The El Niño Southern Oscillation (ENSO) is a pivotal oceanic-atmospheric event rooted in the irregular variations of surface water temperatures in the…

In the world of climatology, few phenomena have such broad and far-reaching impacts as El Niño. Just recently (June 8, 2023), the National Oceanic and Atmospheric Administration (NOAA) has announced the arrival of a new El Niño cycle, sparking interest from meteorologists, agriculturalists, and investors alike. Understanding El Niño, its unique features, its potential consequences for agriculture, and the historical trends it imposes on commodity prices can provide significant insights and opportunities for savvy investors. Understanding El Niño Definition: El Niño is a climatic phenomenon that involves a periodic warming…