KLSE (MYR): SOP (5126)
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Last Price
3.05
Today's Change
+0.07 (2.35%)
Day's Change
2.98 - 3.06
Trading Volume
168,000
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3,357 comment(s). Last comment by Fabien _the efficient capital allocator 3 weeks ago
Johnzhang
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Posted by Johnzhang > 2022-02-11 06:03 | Report Abuse
LONDON (Feb 10): From morning lattes to dinnertime roasts, prices for major food staples are on the boil.
The Bloomberg Agriculture Spot Subindex, which tracks nine agricultural commodities, is nearing an all-time high. Prices across grains, oilseed and softs markets have rallied as supply shortfalls abound, a signal that food inflation already hitting consumers worldwide is unlikely to let up soon.
inputs from energy to packaging rose 10% in January versus last year. And unlike past volatile commodity cycles, farmers are unlikely to ramp up production significantly.
That echoes supply challenges rippling across crop markets. Stockpiles of arabica-coffee at exchange warehouses dwindled to a 22-year low this week, and a US Department of Agriculture report pared its estimate for world wheat and cotton reserves.
Dryness has also spanned key South America soybean-growing regions, as well as west African nations that produce the bulk of the world’s cocoa. And farmers are facing challenges from rocketing costs for fertilizer, pesticides and diesel.
“Prices are rising on strong demand and dwindling stocks with supply-chain challenges still an issue,” Judy Ganes, president of J. Ganes Consulting, said by message.
The gains across food markets threaten to hit import-reliant regions hardest. A milling association in Cameroon this week halted flour deliveries due to soaring costs for wheat.
Soybeans futures topped US$16 bushel in Chicago on Thursday for the first time since May. Cocoa in New York touched a one-year high. The BCOM index will update after trading closes.
“The bull market has staying power,” Rabobank analysts said in a note. “Worsening weather for La Nina-hit southern Brazil and Argentina is eroding global feed prospects and shifting demand to the US, where supplies and acreage expansion are limited.