Past performance does not predict future results. Informational only, not investment advice.
Wheat prices will rise due to oil, diesel, and fertilizer shortages creating global supply pressures. Unlike commodities that can be manipulated, wheat supply constraints should drive sustainable upside.
The author is bullish on wheat into 2027 due to a convergence of supply-constrained catalysts: 97% reduction in Black Sea grain shipping capacity from Russia-Ukraine conflict, El Niño pressuring yields in major exporters like Australia and India, Middle East geopolitical tensions triggering food stockpiling demand, and fertilizer supply constraints limiting replanting capacity.
Wheat production is down 7 million bushels from June with shortage levels similar to 2022. The author expects rising prices starting next month and is positioning with long call options.
Wheat production is down 7 million bushels from June with shortage levels similar to 2022. The author expects rising prices starting next month and is positioning with long call options.
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