What does El Niño mean (financial term)?

"El Niño" is a climate phenomenon that refers to a greater than normal warming of the sea water off the west coast of South America, which occurs once every three to seven years. This phenomenon often has a great influence on the weather, with consequences such as drought in North and South America and floods in Southeast Asia.

The opposite effect, an unusual cooling of the sea water in the same area, is called La Niña and also has significant consequences for the climate.

Investors often anticipate the occurrence of these phenomena and their influence on commodity prices, as drought and floods can lead to failed harvests, which can drive up the prices of certain products and other raw materials.