Citi Boosts Corn, Soybean, Wheat Price Targets on El Niño Fears
Citi has raised its price targets for corn, soybeans, and wheat due to concerns over a strengthening El Niño event. The bank cited a high probability of a very strong El Niño this fall, with NOAA assigning a greater than 90% chance of the event occurring.
The bank's new Production-at-Risk framework suggests that current market pricing only reflects a portion of the potential downside risks to global agricultural production.
Citi has set its 3-month corn price target at $5.40 per bushel and its 12-month target at $5.90 per bushel, while raising its 3-month soybean forecast to $12.75 per bushel with a 12-month target of $13.25 per bushel.
The bank also increased its 3-month wheat price forecast to $7.25 per bushel and set a 12-month target of $7.75 per bushel, citing the grain's exposure to weather and geopolitical risks.