Citi Says ‘Extreme Bull’ Scenario Puts Record $14 Wheat in Reach
(Bloomberg) -- Chicago wheat futures trading at the highest since 2008 could still surge almost 30% more to top a record under an “extreme bull scenario,” according to Citigroup Inc.
Russia's invasion of Ukraine has closed grain ports in the Black Sea, where the two countries account for over a quarter of global wheat exports and a fifth of corn.
Skyrocketing wheat futures are already contributing to soaring food inflation for bread and cereal, jumping as much as 32% this week to $11.34 a bushel, the highest since 2008 when prices reached an all-time peak of $13.495.
They could touch $14 to $14.50 under the most bullish case, Citi said.
The war is “potentially upending the agriculture market outlook,” Citigroup analysts including Aakash Doshi said in a note Thursday. “Absent a quick and sustained de-escalation, we see this shock manifesting through various channels for crop prices.”
Read More: Russian Invasion Smothers Supplies From World's Breadbasket
©2022 Bloomberg L.P.
-
Signature Play: The Classic Cocktail Is Dead. Or Is It?
Classic cocktails are disappearing from India's cocktail menus. But they're still being ordered, taught to bartenders and borrowed from. So, who's really having the last drink?
-
A New Samvat Wishlist: Inclusive Prosperity And Human Development
India has strengthened its economic foundations through infrastructure, digital access and enterprise. Its next growth chapter must deepen productivity, create better livelihoods and widen participation in prosperity.
-
Love, Sex Aur Dhokha: The Audacious Plot To Spy On Jensen Huang
A Taipei dinner, a Singapore chip buyer and a suspected Chinese asset: inside the alleged spy operation that got close to NVIDIA's Jensen Huang.
-
Ten Things I Learnt This Samvat
Patience can be a trap. Cheap stocks can stay cheap. Leverage can wipe you out. What did Samvat 2082 teach us? Niraj Shah writes on 10 lessons from the year gone by.
-
Talking Points This Week: Tech Nerves, FII Buying, And A Faraway Banking Shock
The global markets are not shining this Diwali. The exception in the large markets is, India.
-
Midterm Rally Lasted A Day. The Hard Reality Of A Divided US May Last Two Years | Opinion
Between a contested AI boom, a debt ceiling that arrives in 2027 and a president with every incentive to act alone, the next two years may prove more volatile than the first day's rally suggests.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
