Bread, a huge part of the Peruvian diet, keeps going up; and, from a technical perspective, we can expect higher prices to come.\u00a0 <\/p>\n\n\n\n
Today CME Wheat Continuous Contract EOD surged to the 1247.5<\/strong>, after price had broken out of the contraction triangle pattern last Thursday. This morning, price gapped up putting the commodity on a path to the 1269.5<\/strong> March 8, 2022 high.\u00a0 A breach of this resistance and there is a good chance price will test the 2008 1349.5<\/strong> all-time high.\u00a0<\/p>\n\n\n\n Over in Eastern Europe, due to the war, Ukraine is expecting a 35% drop in wheat exports this year.\u00a0 Wheat prices have risen about 46% across the globe since the Russian\/Ukraine conflict.\u00a0 Pre-war Russia and Ukraine exported 30% of the world wheat. <\/p>\n\n\n\n But it\u2019s not just the war weighing on commodity prices.\u00a0 Inflation has been heating up since the Covid 19 lockdowns in 2020.\u00a0 Oil is back up above 100 dollars a barrel and the CRB commodity index is at the $308.58<\/strong>\u2014a price not seen since May of 2014!\u00a0<\/p>\n\n\n\n Central banks all across the globe are tightening monetary policy.\u00a0 \u00a0The US Fed raised its rate by 50 basis points last meeting and is expected to raise by 50 basis points at their next. <\/p>\n\n\n\n Inflation look really bad all over the world.\u00a0 And it does not look like it is stopping any time soon.\u00a0\u00a0 The American economy shrank by an annualized 1.4% in Q1 of 2022. This was well below market forecast. \u00a0\u00a0EU GDP growth rate expanded by a mere 0.2% in Q1.\u00a0\u00a0Peru\u2019s GDP growth rates stagnated coming in at 0.0%.\u00a0<\/p>\n\n\n\n
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