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Secretary of State Antony Blinken publicly raised the possibility of U.S.-China cooperation on food security in a speech on China policy. The commentary argues that a new global grain crisis is emerging from drought in the U.S. and extreme weather elsewhere, combined with the Russia-Ukraine war.
Concern over tight global grain supply and drought-hit wheat output supports grain prices, though the cooperation proposal itself has no immediate supply effect.
chinausfocus.comLi Zheng Assistant Research Processor, China Institutes of Contemporary International RelationsJun 15, 2022After 361 past bullish geopolitics events, Wheat (SRW) moved a median +0.7% over 5 sessions (58% higher; middle half -1.4% to +3.7%), and +1.3% over 20.
After 323 past bullish geopolitics events, Corn moved a median +0.5% over 5 sessions (57% higher; middle half -1.5% to +2.9%), and +0.9% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
