Here’s the best place to hedge severe El Niño shocks to the food supply chain, BofA says

The best place to hedge El Niño shocks to the food supply chain: BofA Skip Navigation Markets Pre-Markets U.S. Markets Currencies Prediction Markets Cryptocurrency Futures & Commodities Bonds Funds & ETFs Business Economy Finance Health & Science Media Real Estate Energy Climate Transportation Investigations Industrials Retail Wealth Sports Life Small Business Investing Personal Finance Fintech Financial Advisors Options Action ETF Street Buffett Archive Earnings Trader Talk Tech Cybersecurity AI Enterprise Internet Media Mobile Social Media CNBC Disruptor 50 Tech Guide Politics & Policy White House Policy Defense Congress Expanding Opportunity Video Latest Video Full Episodes Livestream Live Audio Live TV Schedule CNBC Podcasts CEO Interviews CNBC Documentaries Digital Originals Watchlist Investing Club Trust Portfolio Analysis Trade Alerts Meeting Videos Homestretch Jim's Columns Education Subscribe PRO Pro News Josh Brown Mike Santoli Calls of the Day My Portfolio Livestream Full Episodes Stock Screener Market Forecast Options Investing Chart Investing Subscribe Livestream Menu Make It select USA INTL Livestream Search quotes, news & videos Livestream Watchlist SIGN IN Create free account Markets Business Investing Tech Politics & Policy Video Watchlist Investing Club PRO Livestream Menu CNBC PRO Here’s the best place to hedge severe El Niño shocks to the food supply chain, BofA says Published Tue, Aug 18 2026 9:49 PM EDT Justina Lee @in/justina-lee-2742aa59 WATCH LIVE A young couple driving next to a herd of dairy cattle on a farm quadbike Don Wu | E+ | Getty Images New Zealand looks to be the best place to hedge impact from severe El Niño shocks to global food supply chains, according to Bank of America. "Historically, El Niño has been associated with widespread crop losses across key exporting regions, and current risks are amplified by elevated fertilizer prices and lingering supply-chain disruptions," BofA strategist Oliver Levingston said. While a major El Niño weather event posed growing risks to the global food supply chains and shortages in fertilizer inputs have been disrupted by the developments in the Strait of Hormuz, New Zealand's outsized dependence on agricultural exports would mean that a sustained trouble for the global food supply "is likely to be a positive terms-of-trade shock," the bank noted. "For New Zealand, whose economy is unusually exposed to agriculture relative to other G-10 markets, the risk is that markets begin pricing a more favorable terms-of-trade outlook, creating an upside risk" for the New Zealand dollar, BofA said, adding it expected the kiwi to see a sharp appreciation. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news. Bu özet bilgilendirme amaçlıdır, yatırım tavsiyesi değildir. — hisseonlinebot