Business · Economy · 9 hrs ago

Forecast El Niño could test Brazil’s crops and economy in 2027

Forecast El Niño could test Brazil’s crops and economy in 2027

El Niño is a climate pattern in the Pacific that can shift weather in different parts of the world.

Forecasts cited in Brazil point to an exceptionally strong episode, with a peak expected in December.

The World Meteorological Organization projects a Pacific temperature anomaly of 3.7°C, above the previous record of 2.6°C.

In Brazil, forecasters warn of drought in the central and northern regions and excess rain in the South as farmers plant a crop expected to reach a record size.

Dry, hot conditions could reduce soybean yields, while rain may help soybeans in the South but harm wheat.

The uneven weather could also affect electricity supplies, with October water inflows forecast to be low in parts of the North and high in the South.

Brazil’s central bank will need to assess whether any price shock spreads to expectations and other prices, while the government can respond to problems that interest-rate policy cannot address.

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