[Special Stock] Farm Story, North America Heatwave and China Heavy Rain Cause Grain Prices to Surge... Yeouido 40 Times Larger Farm

[Asia Economy Reporter Yoo Hyun-seok] Farm Story's stock price is soaring. The rise in international grain prices appears to have influenced the stock price.

As of 2:06 PM on the 27th, Farm Story was trading at 2,735 KRW, up 460 KRW (20.22%) compared to the previous trading day.

Unusually high temperatures and dry weather have continued in the United States and Canada, causing severe crop damage. Prices of major grains, including wheat, are showing signs of rising.

According to the United States Wheat Associates, a US farmers' group supplying wheat to the domestic milling industry, the spot price of US white wheat (for confectionery) has risen 62% compared to the same period last year. The price of hard wheat (for bread-making) has also increased by nearly 40%. Futures prices for white and hard wheat (for delivery next month) on the Chicago Board of Trade (CBOT) and Kansas Board of Trade (KBOT) remain more than 34% higher than last year.

The US Department of Agriculture forecasted that spring wheat harvests in the Northern Plains would hit the lowest level in 33 years due to severe drought, leading to the largest reduction in wheat supply in 8 years. Inventories are also insufficient. As of the 30th of last month, US soybean stocks decreased by 44% compared to the previous year, while corn and wheat stocks fell by 18% each.

Recently, record-breaking heavy rains in Henan Province, a major grain-producing area in central China, have raised concerns about disruptions in food production.

Last year, Farm Story decided to invest 19.9 billion KRW in its subsidiary, Ekkohoz. Ekkohoz is an overseas corporation engaged in the distribution and import-export business of agricultural and livestock products in Russia. Ekkohoz plans to use the secured funds as operating capital.

Farm Story focused on strengthening its grain business in Russia through the investment in Ekkohoz. Since 2008, it has established Ekkohoz in Russia's Primorsky Krai and operates farms covering an area of 10,890 hectares, approximately 40 times the size of Yeouido.