US Wheat Prices Surge Amidst Global Conflicts and Drought

The wheat market has entered its first bull run in years, driven by a combination of factors including El Niño and global conflicts. According to Jim Roemer, a meteorologist and commodity trading advisor, wheat prices have rallied by an average of 14% during moderate or strong El Niño events. The current El Niño event is one such instance.

The severe drought in western Europe has also contributed to the price surge, particularly for corn and soybeans. Additionally, 30% of the western Midwest corn and soybean crops are experiencing drought conditions, further driving up prices.

The conflicts overseas have resulted in a lack of exports from the Middle East and Ukraine, exacerbating the supply-demand imbalance and pushing wheat prices higher. The US wheat crop is also expected to be lower than usual due to last spring's drought and reduced acreage.