[Reporter's Perspective] Confusing International Situation, Raw Material Market in the Mist

Amid the uncertainty cast on the global economy by Trump's trade war, the international grain market is showing unusual trends. According to the Chicago Board of Trade (CBOT), corn futures prices have risen by nearly 10% compared to the end of last year, reaching $187 per ton earlier this month. In contrast, soybean prices have fallen by nearly 20% over the past year, from $359 per ton in September last year to $299 per ton last month. Unlike the stable situation earlier this year, the market is showing mixed trends as the year-end approaches, raising concerns for domestic compound feed companies that import most of their raw materials. Additionally, the fluctuation in ocean freight rates, which determine raw material prices, is adding to the uncertainty. The most challenging aspect of purchasing compound feed raw materials through the futures market is the trend of the won-dollar exchange rate. Although futures trading reflects international market prices three months later, the ...