Drought has increased the price of wheat to the maximum of the last three years – Print

Wheat is driving rising grain prices after drought in Europe, Australia and the former Soviet Union, according to a Saxo Bank analysis released by the committee drafting.
The European wheat market has risen in Paris the price of wheat to more than 200 EUR / metric ton for the first time in the past three years, according to the Danish Institute of Investment and Online Commerce . "The dry, warm weather in most key regions has led to higher prices, while US $ 12 billion in subsidies to farmers affected by trade tensions and unexpected demand from Europe have supported the price. of soybean production, they have had to resort to reserves to keep their animals alive, and the price of wheat has increased considerably, because everyone thinks of winter supplies, "said the Saxo Bank report.
Thus, for the second week in a row, the Bloomberg Commodity index was trading upwards, according to Saxo's analysis, which states: "Goods seem to have found their pace after a loss of 10 % in June., when the "trade war" began, which led to a decrease in demand and, implicitly, rising prices. "
Precious metals fell, mainly in because of the correlation "With the depreciation of the yuan, the price of money falling for seven consecutive weeks, the worst fall of the last 18 years," said Saxo, adding: coffee – they also felt the crisis through which the real Brazil goes. "
" Saxo Bank estimates a maximum oil price of $ 76.33 / barrel at this time

The price correction for crude oil, which has reached $ 80 / barrel, seems to be coming to an end, this evolution being supported by factors such as the trade war and higher demand, according to the Saxo report.
"The tensions will certainly fuel the idea that global economic growth will suffer and that emerging economies will be in the first wave of negative consequences, already affected by the cost of the dollar and the rising cost of their external debt in the world. this currency, "said the statement.
According to Saxo Bank, Libya and Canada have solved the problem of disruptions to delivery. In addition, several member countries of the OPEC Cooperation Council – Saudi Arabia, the United Arab Emirates and Kuwait – have started to increase their production and exports.
"Hedge funds have therefore liquidated many positions on Brent crude, which is why we argue that the price of oil will oscillate between 70 and 80 dollars a barrel, there is a safety net under this price created by some related risks.More than 80 dollars … it would be quite difficult to see such a price, especially in the context of a "generalized war against trade", according to the report.
Saxo Bank attracts also attention on the current political context: "Trump is struggling to achieve the mid-term elections" (after mid-term). "After the first trade tensions hit his constituents – the soybean producers and the corn, the last thing you could want would be to see the gasoline explode.On this logic, we do not rule out a possible "opening" of strategic oil reserves.
In this context, analysts at Saxo Bank find a peak oil price at the present time of 76.33 dollars / barrel.

a.i.