El Nino Seen by Citigroup Posing Risks for Global Economy
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El Nino poses a risk for the global economy in the second half because the event may hurt crops and boost world food inflation, according to Citigroup Inc.
The weather pattern, which can cause droughts in Asia and wetter summers in North America, may increase returns from grains by as much as 25 percent and lead to higher retail food prices, the bank said in a report dated June 16 and based on El Nino cycles and commodity returns going back to 1970.