Here’s the best place to hedge severe El Niño shocks to the food supply chain, BofA says

Bank of America says one country stands out as the best place to hedge potential market impact from severe El Niño-driven disruptions to global food supply chains. The note frames the risk as mainly commodity and supply-chain related rather than a direct company-specific shock, implying limited near-term moves beyond the relevant hedging demand.

Analysis

Bank of America says one country stands out as the best place to hedge potential market impact from severe El Niño-driven disruptions to global food supply chains. The note frames the risk as mainly commodity and supply-chain related rather than a direct company-specific shock, implying limited near-term moves beyond the relevant hedging demand.