JPMorgan analyst Nora Szentivanyi's warning last week that the next global food crisis could begin as early as next year has been a major wake-up call for some, adding to the growing voices on institutional desks warning that food inflation is poised to re-accelerate.
Remaining extra watchful about agricultural prices, Bloomberg reported earlier that US corn futures moved higher after preliminary results from the Pro Farmer Crop Tour indicated weaker-than-expected yields in parts of critical growing belts across the Midwest.
Corn yield estimates were about 3% below last year in Ohio and 14% lower in South Dakota. Soybean pod counts also declined, while severe storms and flooding in Indiana and Ohio added to concerns about further crop damage."
“The crop tour has somewhat buoyed markets so far, considering the expected lower yields and unfavorable weather,” said Eliza Redfern, Senior Manager Industry Insights for Bendigo Bank Agribusiness.
Chicago corn futures are approaching their 2026 highs, while wheat futures are closing in on levels last seen in 2023.
Meanwhile, and perhaps most alarming, the broader agricultural complex is confirming the move in soft commodities. The Bloomberg Agriculture Spot Index rose to about 406, its highest level since early 2023 and roughly 27% above its 2024 low.
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