Agro-Chemicals Q4 Earning Preview - Higher Commodity Prices Keeping Farm Incomes Elevated: Dolat Capital
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Dolat Capital Report
Prices for all main cereals have gone up significantly in recent months.
Despite record levels of cereals production in 2020-21, global consumption is estimated to increase significantly and to weigh on ending stocks.
This is largely driven by a significant rise in animal feed demand in China. Weather disruptions and the concentration of global wheat and maize stocks in India and China contributed to the price rise.
Following the surge in energy prices, fertilisers prices increased substantially and put pressure on farmers’ margins.
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