The declaration of a strengthening El Nino has raised concerns about agricultural and mining commodities, with coffee and palm oil likely to experience the sharpest price rises.
The Australian Bureau of Meteorology this week confirmed earlier pronouncements by US and Japanese weather services that El Nino conditions have begun across the tropical Pacific.
El Nino conditions can wreak havoc on commodity prices. It causes drought in Australia, heavier rain across south America and changes to wind patterns across the Pacific region. The event occurs every few years each with slightly different impacts on commodity prices.