[Special Stock] Grain and Feed Stocks Hit Upper Limit Amid Soaring Wheat Prices

[Asia Economy Reporter Hwang Junho] Grain-related stocks are hitting the upper price limit following news that imported wheat prices surged significantly last month.

As of 10:19 AM today, the stock price of Hantap, a grain milling and feed company, is at 1,965 KRW, up 29.70% from the previous close. Feed company Korea Industries also recorded a 29.89% increase to 5,410 KRW. Hanil Feed hit the upper price limit and is currently trading at 13,000 KRW, up 26.83%.

The rise in these stocks is analyzed as a result of increased earnings expectations due to last month's wheat price hike. According to the Korea Customs Service, last month's wheat imports amounted to 429,000 tons, with an import value of 172.45 million USD. The price per ton was 402 USD, up 8.8% compared to February and 41.4% compared to March last year. The import wheat price exceeding the 400 USD mark is the first time in 13 years and 3 months since December 2008 (406 USD), during the global financial crisis.

The price increase is a result of the war between Russia and Ukraine, major wheat producing and exporting countries. According to the Korea Rural Economic Institute, Russia accounts for 20% and Ukraine 9% of the global wheat trade volume.

This content was produced with the assistance of AI translation services.