(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
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