Trade and price risks are concentrated among a few major exporters and import-dependent regions
Global production and markets are essential to monitor for price and trade drivers. However, acute food insecurity analysis requires focus on regional agricultural production losses that may not be offset by broader global availability. Production losses among major regional suppliers can tighten local and regional markets, raise prices, and increase import requirements in food-deficit countries, particularly where those countries depend on a small number of exporters.
Southern Africa is particularly exposed to El Niño-related maize losses because regional deficit countries depend heavily on imports from South Africa and, in surplus years, Zambia. In strong and average production years, it is the main source of maize for the region’s deficit countries. Since 1980, production in South Africa has been 14 to 64 percent below normal in every strong and very strong El Niño event, except 2009/10, when it was 18 percent above. During the 2015/16 event, drought cut South Africa’s maize production to 40 percent below normal, and its white maize price reached a record high in early 2016. This diverged sharply from world food prices, with the Food and Agriculture Organization (FAO) Food Price Index then at its lowest level since 2009. Zambia also exports maize to the DRC, Malawi, and other neighbors in surplus years. Its crop came in 38 to 60 percent below normal production in 1991/92, 1997/98, and 2023/24, but more than 40 percent above it in 1986–1988 and 2009/10. It restricted maize exports from April 2016 to April 2017, with a full halt from mid-October 2016, and from April 2023 to August 2025.
For wheat-importing countries, El Niño-related production losses in Australia can tighten supply from a major global exporter even when overall world wheat availability remains adequate. Australia typically supplies about 11 percent of global wheat exports, for example, supplying more than a third of Yemen’s wheat imports in 2024/25. El Niño often brings drier winters and springs to eastern Australia, and wheat production has averaged 15 percent below normal production in the strong and very strong El Niño events since 1980, with shortfalls of 12 to 40 percent, although production was near or above normal in 1986/87, 1997/98, and 2009/10.
Global rice markets are especially sensitive to India because El Niño can affect its production while domestic price pressures can also trigger export restrictions that amplify international price movements. El Niño tends to weaken India’s June-September monsoon, which waters the main rice crop. India’s rice crop came in well below normal production in 1982/83 (17 percent), 1987/88 (14 percent), and 2009/10 (8 percent), all strong or very strong El Niño years. In 1997/98 and 2015/16, it came in 2 percent above and 6 percent below normal production, respectively. Only about 12 percent of world rice production is traded, and India supplies on average around 40 percent of world exports. As a result, changes to India’s export policy can sharply move international prices. Export restrictions by India and Vietnam were a major driver of the 2007/08 rice price spike, even as world production was rising. An IFPRI study of export restrictions from 2007 to 2023 finds that domestic food inflation predicts such restrictions better than world prices do: India’s restrictions of 2022/23 followed increases in its domestic food prices. In July 2023, amid an uneven monsoon season, India banned exports of non-basmati white rice to curb domestic rice prices, which had risen 11.5 percent in a year, despite its record 2022/23 harvest. India lifted its 2022/23 restrictions on non-basmati white and broken rice exports between September 2024 and March 2025.
West Africa is particularly exposed to changes in Indian rice supply and export policy because many countries in the region rely heavily on Indian imports. Among the nine West African countries that report comparable rice import volumes by weight for both 2023 and 2024, India supplied about 60 percent of imports in 2023 and about 44 percent in 2024, while its restrictions on non-basmati white and broken rice were in force for most of that year. Nigeria, the region’s largest rice importer, reports almost none of its rice imports by weight, so its trade data are not comparable to the rest of the region. Nigeria prohibits rice imports across its land borders, but imported rice reaches it informally through neighboring countries, including Benin. India is the main source of its parboiled rice, and lower-priced milled rice also arrives informally from India and Thailand.
Thailand, the world’s third-largest rice exporter, introduces an additional source of El Niño-related rice market risk because drought can reduce its exportable surplus at the same time that other major suppliers face production or policy constraints. El Niño-related drought in 2015 and 2016 reduced Thailand’s irrigation supplies and rice area. The irrigated off-season crop, which supplies much of Thailand’s exportable surplus, is the most exposed. Thailand’s rice crop came in 20 percent below normal production in 2015/16, its largest shortfall in a strong or very strong El Niño year since 1980. In the other El Niño events, output stayed within 7 percent of normal production. Among the same nine West African countries, Thailand was the second-largest source of imported rice in 2024, its share rising from about 9 percent in 2023 to about 21 percent in 2024.
El Niño also poses risks beyond staple grains: production losses in Indonesia and Malaysia can raise vegetable oil import costs across sub-Saharan Africa, where palm oil dominates edible oil imports in many countries. The two countries supply 87 percent of world palm oil exports. Their combined output has averaged 4 percent below normal production in the strong and very strong El Niño events since 1980, with the largest shortfall, 12 percent, in 1997/98. In Malaysia, losses can begin within months of an El Niño dry spell and continue for up to two years. In Kenya, Ethiopia, Malawi, Nigeria, and Senegal, palm oil made up 72 to 95 percent of vegetable oil imports by value in 2023. In 2025, higher costs for edible oils and other foods raised sub-Saharan Africa’s food import bill by 4.8 billion USD, even as its cereal import bill fell.
Current market status and prices by crop
The early and potential impacts of El Niño on crop production are just one of several drivers of international grain prices in 2026 and heading into 2027. Although all three staple grains had record global production in the 2025/26 marketing year, meaning supplies entered the El Niño period from a place of strength, 2026 has also brought upward price pressures from rising crude oil prices and volatile fertilizer prices due to disruptions in the Strait of Hormuz, as well as shipping constraints related to conflicts around Bab al-Mandeb and the Black Sea.
International grain prices are generally higher than a year ago. In August 2026, U.S. wheat export prices were 43 percent higher than in August 2025, with rice and maize up 26 and 21 percent, respectively. Maize and rice were close to their five-year averages. Wheat was about 10 percent above its five-year average. Part of the year-on-year increase reflects how atypically low prices were in 2025, when world wheat export prices were near five-year lows in September 2025. Wheat and maize prices then rose in three steps, which the available evidence ties mainly to factors other than El Niño. Prices first rebounded through February 2026, on strong U.S. export demand and dry weather in the U.S. Plains. U.S. wheat export prices then rose from 258 to 303 USD/metric ton between February and May 2026. The Agricultural Market Information System (AMIS) attributed the March rise partly to surging energy prices as the conflict in the Middle East escalated. The FAO tied it to drought in the U.S. and to smaller plantings expected in Australia because of higher fertilizer costs. At the time, El Niño was still only forecast, and it tends to bring more rain to the U.S. southern Plains, where the drought was ongoing. From June to August 2026, wheat rose 15 percent and maize 14 percent. AMIS ties that rise chiefly to disrupted Black Sea shipments and, for maize, to uncertain U.S. yields. In June, early El Niño signals had limited impact on maize futures. Rice markets, on the other hand, have shown somewhat greater sensitivity to emerging El Niño concerns. The International Grains Council’s rice price index rose 3 percent in August to its highest level since March 2025, which AMIS attributed to concern over El Niño’s effect on crops across Asia.
For 2026/27, USDA projects global production of maize, wheat, and rice at 2.7 percent below last year’s, but still the second-largest crop on record. Within that relatively strong global outlook, production is expected to decline in some El Niño-exposed exporters. USDA forecasts Australia’s 2026/27 wheat crop at 14 percent below last year’s, after raising its forecast in September. Australia’s agricultural statistics bureau forecasts a 17 percent fall, largely driven by a drop in the area planted of 11 percent. USDA also forecasts Thailand’s 2026/27 rice crop to be 2 percent smaller than the previous year, driven by a decline in the off-season crop harvested in 2027.
India’s smaller 2026/27 rice crop is not currently expected to materially constrain exports, but domestic prices remain an important signal to monitor. USDA projects that India’s 2026/27 rice production will decline 4.6 percent (7 million metric tons [MMT]) from last year, the first annual decline in 10 years, due to below-normal and uneven monsoon rainfall. USDA links the weak August rains to strengthening El Niño conditions. It still expects record exports of 25 MMT, drawing from substantial stock levels. USDA’s forecast includes no export restriction, and to date there are no strong market signals indicating an export ban is likely this year. In 2023, USDA’s July forecast put India’s 2023/24 exports at 23.0 MMT, and its August forecast cut them to 19.0 MMT after India’s ban on July 20, 2023. At the start of August 2026, India’s government held 40.2 MMT of milled rice in reserve, excluding unmilled paddy, about three times its normal buffer of 13.54 MMT. However, India’s stocks were also above the buffer norm in July 2023, when rising domestic prices led it to ban exports. USDA reports that speculation about El Niño has fueled increases in India’s domestic retail rice price in recent months.
Southern Africa’s maize harvest depends on the December-to-February core of the rainy season. The regional climate outlook forum gives high confidence in below-normal rainfall over most of South Africa, Zimbabwe, southern Zambia, and much of Mozambique through February 2027. The region enters the season after a 2026 cereal harvest nearly 10 percent above the five-year average. During the El Niño-related droughts in 2015/16 and 2023/24, South Africa’s white maize price peaked in early 2016 and January 2025, respectively – about 10 to 20 months after El Niño conditions first emerged. In 1997/98, South Africa’s harvest was about a fifth below average, as farmers planted less and dry spells cut yields. If this El Niño results in drought, the 2015/16 and 2023/24 pattern would indicate a likely price peak between about April 2027 and early 2028.
Regions of higher concern for food availability and price shocks
Considering previous production outcomes during El Niño events, current forecasts for 2026/27 agricultural production, and typical trade flow information, several regions are of elevated concern due to potential shocks to food supply and/or prices driven by international market impacts of El Niño.
- In Southern Africa, maize, the primary staple across most of the region, is largely supplied by domestic and regional production. Maize production in South Africa has come in well below normal production in most strong and very strong El Niño events since 1980, and has been a key driver of rising acute food insecurity. Stocks from strong early-2026 maize harvests, particularly in South Africa and Zambia, are expected to buffer regional supply and prices into early 2027. The larger risk is a below-average 2027 harvest. As carryover stocks decline, price pressure would build. Following the same pattern as in 2015/16 and 2023/24, South Africa’s white maize price would peak between about April 2027 and early 2028.
- In West Africa, a substantial portion of rice, a key staple in many countries, is imported from Asian markets. India’s rice production was well below normal production in 1982/83, 1987/88, and 2009/10, and Thailand’s in 2015/16. In July 2023, the Indian export ban was followed by a rapid increase in global prices. Thai 5 percent broken rice rose 16 percent from July to August 2023. In most of the West African markets analyzed, retail prices of imported rice held steady through late 2023. Several then rose and, by May 2024, stood 29 percent above their June 2023 level in Dakar and 18 percent above in Cotonou. While India’s restrictions were in force, importers turned to Thailand, and its share of their reported rice imports rose from about 9 to 21 percent.
- Yemen imports a substantial portion of its main staple, wheat, from Australia. Australian wheat production has averaged 15 percent below normal production in the strong and very strong El Niño events since 1980 (Annex 1). Australia supplied more than a third of Yemen’s wheat imports in 2024/25.