Goldman Raises Grain Forecasts on ‘Sharpest Shock’ Since 1970s
Wheat kernels in Tersky village, near Stavropol, Russia.
Source: Bloomberg
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Grain prices are set to jump even more as war in Ukraine and sanctions on Russia upend supplies from the Black Sea region, Goldman Sachs Group Inc. said in a note Tuesday.
Shipping lines disruptions, surging input costs and concerns about new plantings in Ukraine set the global grains market on track for the “sharpest shock” since the so-called Great Grain Robbery in the 1970s, according to Goldman. That was when prices skyrocketed after it was revealed the Soviet Union cut a deal that effectively wiped out U.S. wheat inventories.