Global Crop Prices Log Biggest Quarterly Jump Since Ukraine Invasion As Sticky Inflation Hits Grocery Bills
The Bloomberg Agriculture Spot Index (BCOMAGSP) posted its largest quarterly gain since Russia invaded Ukraine in early 2022, as Black Sea disruptions, a crisis in the Strait of Hormuz, and mounting El Niño risks have formed what could be considered a perfect storm poised to drive food prices higher.
BCOMAGSP, which tracks 10 major crops including corn, soybeans, wheat, coffee, sugar, cotton, cocoa, and others, jumped 13% in the third quarter.
Among individual movers, corn and wheat each climbed 15%, while soybeans gained 13%.
Beyond the Russia-Ukraine fighting and disruptions to grain shipments from the Black Sea region, the next big threat to the crop space is a strengthening El Niño, on track to rank among the strongest on record. This puts various types of crops in major growing belts around the world at risk and has sent harvest yields plunging.
Already, India's weakest monsoon season in a decade has added to concerns about harvests and food prices.
El Niño global impacts:
In August, BCOMAGSP recorded its largest monthly surge since the Arab Spring riots era, as the number of Wall Street desks warning about a food crisis next year continues to rise.
Our coverage:
For central banks already grappling with a deepening global bond rout, surging diesel and crop prices threaten to make inflationary pressures rather sticky. The refined-products crisis is raising the cost of producing and transporting food, while higher crop prices risk feeding through to grocery bills next year.
Tyler Durden Thu, 10/01/2026 - 10:40
Continue reading...
[ H/T ZeroHedge ]
The Bloomberg Agriculture Spot Index (BCOMAGSP) posted its largest quarterly gain since Russia invaded Ukraine in early 2022, as Black Sea disruptions, a crisis in the Strait of Hormuz, and mounting El Niño risks have formed what could be considered a perfect storm poised to drive food prices higher.
BCOMAGSP, which tracks 10 major crops including corn, soybeans, wheat, coffee, sugar, cotton, cocoa, and others, jumped 13% in the third quarter.
Among individual movers, corn and wheat each climbed 15%, while soybeans gained 13%.
Beyond the Russia-Ukraine fighting and disruptions to grain shipments from the Black Sea region, the next big threat to the crop space is a strengthening El Niño, on track to rank among the strongest on record. This puts various types of crops in major growing belts around the world at risk and has sent harvest yields plunging.
Already, India's weakest monsoon season in a decade has added to concerns about harvests and food prices.
El Niño global impacts:
In August, BCOMAGSP recorded its largest monthly surge since the Arab Spring riots era, as the number of Wall Street desks warning about a food crisis next year continues to rise.
Our coverage:
- Barclays Warns Next Commodity Shock Is Taking Shape: What You Need To Know
- Agricultural Commodity Prices Break Out As JPMorgan’s Food Crisis Warning Gets Louder
- JPMorgan Pinpoints When El Nino Could Start Wreaking Havoc On Food Supply Chains
- Strongest El Nino In 75 Years Sets Off Food Supply-Chain Alarm Bells
For central banks already grappling with a deepening global bond rout, surging diesel and crop prices threaten to make inflationary pressures rather sticky. The refined-products crisis is raising the cost of producing and transporting food, while higher crop prices risk feeding through to grocery bills next year.
Tyler Durden Thu, 10/01/2026 - 10:40
Continue reading...
[ H/T ZeroHedge ]
