Wheat Market Surges on Drought and El Niño

The wheat market has entered its first bull market in years, driven by factors such as El Niño and wars overseas. According to meteorologist Jim Roemer of Best Weather Inc., wheat prices have soared over the last few weeks due to a combination of factors including droughts in western Europe and the US Midwest.

The severe drought in western Europe has significantly impacted corn and soybean crops, leading to price increases. Additionally, 30% of the western Midwest corn crop is experiencing drought conditions, further contributing to the price surge.

Roemer notes that wheat prices have historically rallied during El Niño events, with an average increase of 14% from July to December in years when El Niño was moderate or strong. The current El Niño event is expected to continue into early August, potentially leading to further price increases.