# Climate Change and El Niño's Impact on Commodity Markets How extreme weather events are shaping commodity prices - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-07-20 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/c8401b8e-679d-4dbe-9b63-f14cb781181b ## Impact of Climate Change Extreme heat and climate events like El Niño are causing unpredictable fluctuations in commodity markets. Experts warn that this poses significant risks for investors. ## The Power of El Niño This year's anticipated 'super El Niño' could surpass the major events of 1982, 1997, and 2015. This could have serious impacts on agricultural and energy commodities. ## Risk to Agricultural Products El Niño-induced heat and drought could reduce crop yields, driving up food prices. Products like coffee, cocoa, and wheat are particularly at risk. ## Impact on Energy Markets Natural gas prices could fall if the winter is warmer than usual. However, reduced water resources for electricity generation could increase energy costs. ## Effect on Metals Metals like copper and aluminum are affected by dwindling water and energy resources. This could raise production costs and push prices higher. ## Warning for Investors Underestimating the effects of climate change carries significant risks for investors. Experts emphasize the importance of treating this as a structural issue. ## Sources covering this story - https://www.cnbc.com/2026/07/20/from-super-el-nio-to-europes-heatwave-how-to-trade-extreme-weather.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._