The El Nino phenomenon impacts food prices as drought and rain hit crops
The El Nino has begun hitting food prices, as the drought and rain caused by this weather phenomenon hits crops, including palm oil and sugar.  The United Nations Food and Agricultural Organisation says food prices for October were up 4%, the largest rise in three years.  The increase was largely pushed by the rains in Brazil, a country that is going through its worst recession in decades; adverse weather caused delay to sugar cane harvesting and slow progress in soya bean plantings.  Drought in Asia-Pacific, caused by the El Nino, has forced dairy costs up by 9.4%, the biggest gain in two years, due in part by concern that New Zealand's milk output will decline.

"What's happening in the Asia region is mainly related to the El Nino event," said Daryna Kovalska, an analyst at Macquarie Group Ltd. in London. "It's been dry in southeast Asia, Australia is under pressure from drought now too. All is linked to El Nino."