As Grain Prices Continue to Surge, Feed Stocks Also Hit Multiple Upper Limits

[Asia Economy Reporter Seongpil Cho] As grain prices continue to surge, feed-related stocks hit the upper price limit en masse on the 18th.

On that day, on the Korea Exchange, Daehan Sugar closed at 3,900 KRW, reaching the maximum price limit of 30.00% compared to the previous trading day. Other companies engaged in the feed business, such as Daeju Industry (29.95%), Hanil Feed (29.91%), Daehan Sugar Preferred (29.87%), and Sajo Dongawon (29.86%), also closed at the upper price limit one after another. Baking-related stocks also surged. Seoul Food Preferred (29.84%) hit the upper price limit, while Seoul Food (18.56%), Daehan Flour Mills (6.25%), and Samyang Corporation (4.78%) rose sharply.

Grain prices are soaring amid increased supply and demand uncertainty due to the war between Russia and Ukraine, major global agricultural producers and exporters. On the Chicago Board of Trade (CBOT), the May delivery wheat futures price was $11 per bushel (approximately 27.2 kg) as of the 15th (local time), up 42.26% since the beginning of the year. Corn and soybean futures prices also jumped 33.21% and 26.60%, respectively, during the same period.