[Featured Stocks] Benefiting from Agflation... Hyundai Feed and Hanil Feed Hit Upper Limit for Two Consecutive Days

[Image source=Yonhap News]

[Asia Economy Reporter Ji Yeon-jin] Hyundai Feed and Hanil Feed have recorded consecutive limit-up prices for two days. As the conflict between Russia and Ukraine prolongs, investment demand seems to have surged due to concerns over rising grain prices, known as "agflation."

Hanil Feed was trading at 3,630 won as of 9:19 a.m. on the 22nd, up 29.87% (835 won) from the previous day. The company also closed with a 30% surge the day before.

Hyundai Feed also soared to 31,550 won, up 29.84% from the previous day, hitting the limit-up price from the market opening. The previous day's closing price of 24,300 won was also at the limit-up.

These stocks are feed manufacturers, and as the Russia-Ukraine war prolongs, the increase in grain prices is expected to lead to higher feed prices, improving their performance, which appears to have stimulated investor sentiment. Russia and Ukraine are major global wheat producers, and Ukraine is known as one of the world's top three granaries, exporting more than half of its grain production, including corn and barley. According to The New York Times (NYT), since the outbreak of the Ukraine war, international wheat and barley prices have surged by 21% and 33%, respectively, and some fertilizer prices have risen by 40% compared to before the war.