War brings gluten-free misery
Wheat shortage spreads turmoil in food company stocks
Investors with strong stomachs might take a closer peek at the JSE’s basket of food producers. The market, fretting about margin-gnawing increases in input costs, is struggling to digest the soft commodity price spike.
The war between Russia and the Ukraine, both major agricultural exporters, means that fears of a sustained rise in soft commodity prices — particularly wheat — are hardly unfounded. For the most part, it seems the JSE’s main food producers have factored in markedly higher input costs for the second half of the year, with Tiger Brands and RCL Foods — both leading bread producers — seeing their share prices drop 17% and 18% respectively over the past 12 weeks...