Citi Boosts Grain Price Targets Amid Strengthening Super El Nino Outlook

Citi has boosted its price targets for corn, soybeans, and wheat due to concerns over an intensifying Super El Nino. The bank increased its three-month corn target to $5.40 per bushel, while the twelve-month projection now stands at $5.90 per bushel.

For soybeans, Citi raised its three-month forecast to $12.75 per bushel after the prior target was hit, with a twelve-month figure of $13.25 per bushel. Wheat saw its three-month estimate climb to $7.25 per bushel, and the twelve-month outlook was set at $7.75 per bushel.

Citi noted that current market prices seem to account for only a fraction of the possible downside to global crop output, as assessed through its newly introduced Production-at-Risk framework. The firm highlighted that a potent El Nino presents a considerable risk to palm oil output in Indonesia and Malaysia, potentially driving stronger demand for soybean oil and, in turn, lifting soybean prices.