Key insights
- Speculation about a "super El Nino" event is driving discussion of potential commodity investment opportunities. Concerns about droughts impacting wheat and rice production, along with disease risks in cocoa, are highlighted as potential bullish catalysts for these commodities. The overall impact on US equities is likely to be limited, but commodity-related stocks could see some positive movement.
I know it's speculation at this point, but I keep on hearing it's more likely now than previously that there will be a super el nino event.
I was wondering if anyone had thought about potential investment opportunities and, in particular, in the commodity space. I was thinking the below (but keen to get peoples thoughts):
- wheat
- rice
- coffee
- cocoa
Most of the above is based on droughts expected in key growing countries. In cocoa case this is due to increased risk potential viruses like of black pod and Cocoa Swollen Shoot Virus (CSSV).