The El Niño phenomenon has led to an increase in the prices of food and feed.

In August this year, CBOT corn futures posted a monthly surge of as much as 16 %. Weather‑related risks triggered by El Niño stand as the key driving force behind this rally.

As the world’s top corn exporter, the United States Corn Belt in the Midwest is under pressure from high‑temperature conditions. The United States Department of Agriculture (USDA) has cut its yield forecast for this crop year, while corn crop conditions have deteriorated noticeably compared with the same period last year. Markets are growing concerned that harvest output will fall short of expectations. Hit by extreme heatwaves, corn‑producing areas in Europe have also seen the EU lower its corn‑production outlook, sending clear signals of potential yield losses. Looking ahead to South America and Southeast Asia, there remains a high risk of drought in the later phase of El Niño, creating substantial uncertainty over next season’s corn‑planting conditions.

Tighter supply‑demand expectations have directly pushed up international corn quotations. As the primary energy raw material for animal feed, higher corn prices will transmit costs upward along the industrial chain. Costs for corn‑derived by‑products including Corn Gluten Meal (CGM) and DDGS are rising accordingly, which in turn increases procurement expenses for feed mills worldwide.