A MAJOR FOOD SUPPLY SHOCK COULD BE COMING SOON

JPMorgan is warning that Q1 2027 is when El Niño could start causing serious problems for global food supply chains
And the timing is bad
Agriculture is already dealing with higher diesel costs fertilizer shortages and trade disruptions
The Middle East accounts for around 42% of global urea exports and 27% of ammonia exports making fertilizer supply another major risk
JPMorgan estimates global food inflation could reach around 5% in the first half of 2027 up from roughly 2.8% in the same period of 2026
If a very strong El Niño hits while energy prices stay high global food inflation could rise by another 1.3% to 1.5%
And this is coming at the worst possible time
Central banks are already dealing with higher inflation and energy prices
If food inflation starts rising too they could be forced to keep rates higher or hike them further to bring inflation down.
That means more expensive borrowing which is bad for stocks and crypto