World Food Price jumped in August after two consecutive months of decline as the rise in sugar and vegetable oils gave a big push to the price.
Food and Agriculture Organization (FAO) Food Price index averaged 127.4 points in August, increased by 3.1 percentage points from July and 32.9 percentage points when compared to the same period last year.
FAO Vegetable Oil Price Index increased by 6.7 percentage points in August, while international palm oil prices bounced back to historic high due to concerns over slow production and inventory drawdown in Malaysia after hitting a six-month low in January due to heavy rains and floods that continued to dampen the world’s second-largest producer output.
The share price of Thai Vegetable Oil Public Company (TVO) rose 3.17% in August from Bt31.50 to Bt32.50 per share.
Univanich Palm Oil Public Company Limited (UVAN) rose 15.38% in August from Bt6.50 to Bt7.50 per share.
United Palm Oil Industry Public Company Limited (UPOIC) rose 14% in August from Bt5.70 to Bt6.50 per share.
Vichitbhan Palmoil Public Company Limited (VPO) rose 36.66% in August from Bt1.20 to Bt1.64 per share.
Chumporn Palm Oil Industry Public Company Limited (CPI) rose 24.34% in August from Bt3.04 to Bt3.78 per share.
Lam Soon Thailand Public Company Limited (LST) rose 4.90% in August from Bt5.10 to Bt5.35 per share.
Meanwhile, the FAO’s sugar index rose 9.6 percentage points from July in concerns over frost damage to crops in Brazil, the world’s largest sugar exporter, even with Good production prospects in India and the European Union to help ease concerns.
The share price of Khon Kaen Sugar Industry Public Company Limited (KSL) rose 6.93% in August from Bt3.46 to Bt3.70 per share.
Khonburi Sugar Public Company Limited (KBS) fell 5.93% in August from Bt4.72 to Bt4.44 per share.
Buriram Sugar Public Company Limited (BRR) fell 6.6% in August from Bt6.80 to Bt6.35 per share.
Kaset Thai International Sugar Corporation Public Company Limited (KTIS) fell 1.62% in August from Bt6.25 to Bt6.15 per share.
According to global indicators, palm oil is trading around 7% higher on a weekly basis, but sugar price is trading slightly in a negative territory of 0.80% on a weekly basis.
Should the drawdown in Malaysia and lower production in Brazil continue, vegetable and palm oil, as well as sugar price, could see further growth in September amid rising demand after the lockdown relaxation from the Covid-19 pandemic.