S&P Global says El Nino could raise food prices 2027
Heads up: a new S&P Global report says food prices might climb in 2027, thanks to the El Nino weather pattern.
Farmers are already dealing with expensive fertilizer and diesel, and if El Nino hits hard, growing food could get even tougher in major farming regions.
The report calls this a serious risk for global food security, with the real impact showing up gradually over time.
Higher food prices likely before stabilization
El Nino is expected to bring more droughts and floods to Asia, Africa, and Latin America: bad news for crops.
Grain reserves are already super low (partly because of the Ukraine conflict), so there's not much buffer if harvests fail.
Plus, pricier diesel makes biofuels more attractive, which means less land left for growing actual food.
Even though fertilizer production should slowly recover, higher food prices seem likely before things stabilize.