LATEST MINTEC REPORT
COVID-19 continues to impact global supply chains. The price effects across various commodity groups are reflective of numerous factors, many of which are country and/or market specific. China is a key import market for various commodities covered in this report, thus influential in supporting demand and prices. As the Chinese economic recovery continues apace, the noticeable impact of increased trade is cited across various commodities groups, including meat, oilseeds, packaging, and grains. Conversely, the prospect of China re-implementing more stringent border controls remains a pertinent threat. Parts of Europe are again tightening controls on social movement in order to curb localised spikes. With the virus widely anticipated to escalate during the northern Hemisphere winter, commodity price volatility appears increasingly likely during Q4 2020.
Since the beginning of the year, businesses from the food sector have been impacted by unexpected volatility in commodity markets. While the effects have varied, they have all been influenced by these five critical factors: