One of the greatest changes we have seen to the market in recent weeks, and one that will become more of a factor as we move forward, is food security.
Many countries around the world saw their food supplies dwindle in recent months as the coronavirus disrupted global logistics. This was especially the case for countries that tend to go hand to mouth for coverage, with China being the main one.
While China has been the world’s leading commodity importer for several years, we may see even more demand in the near future. China was hit especially hard when the coronavirus infection spread, as the country was just starting to recover from the African swine fever outbreak on hogs.
China used a considerable amount of its food in storage to satisfy demand when its hog herd was cut by 40%, mainly frozen pork and soybeans. As a result, it has now turned to large imports to both satisfy current demand but also to replenish the stocks it used.
One difference between...