This year's unusual weather patterns, from a strong El Niño to severe heatwaves in Europe, are causing significant disruptions in commodity markets, according to commodity strategists. They warn that financial markets are underestimating how climate volatility affects a wide range of assets, including agricultural products, energy, and metals. The El Niño phenomenon, which warms ocean temperatures, has led to droughts in some regions and floods in others, damaging crop yields and driving up prices. Meanwhile, Europe's extreme heatwave has strained energy supplies, boosting demand for natural gas and electricity. Strategists note that these weather shocks are becoming more frequent and intense due to climate change, yet market pricing often fails to fully account for such risks. This oversight could lead to sudden price spikes and increased volatility. For example, coffee, cocoa, and sugar prices have already reacted to changing weather conditions. Investors are advised to monitor climate patterns more closely to better anticipate market movements. The impact extends beyond commodities, affecting insurance, real estate, and other sectors. As global temperatures continue to rise, experts expect weather-related market disruptions to become a more regular concern.