Agri-Commodities Suffer from Severe El Niño Phenomenon
The agri-commodities have been drastically impacted by this year’s El Nino phenomenon, the most severe in nearly a decade.
Supply Disruptions Impact Cocoa and Coffee Production
PRICES of agricultural commodities cocoa and coffee are expected to ease from historical highs recorded in 2024, but remain elevated amid supply disruptions.
The El Nino phenomenon this year was the most severe in almost a decade, which had a drastically negative impact on global cocoa and coffee production.
Cocoa Production Oversold
Jonathan Parkman, head of agricultural sales at commodities broker Marex, noted that the Ivory Coast and Ghana had both oversold the amount of cocoa they had produced.
Conclusion
The severe El Nino phenomenon has had a devastating impact on global cocoa and coffee production, leading to supply disruptions and historically high prices. While prices are expected to ease, they will remain elevated due to the current supply situation.
FAQs
Q: What is the current state of the agri-commodities market?
A: The market is experiencing supply disruptions due to the severe El Nino phenomenon, leading to historically high prices.
Q: How will the prices of cocoa and coffee be affected?
A: Prices are expected to ease from historical highs but remain elevated due to the supply disruptions.
Q: Which countries have been affected by the El Nino phenomenon?
A: The Ivory Coast and Ghana, both major producers of cocoa, have been severely impacted by the phenomenon.
Q: What is the outlook for the agri-commodities market?
A: The market is expected to remain volatile, with prices stabilizing as new supply is brought to market.
