(provided by SK gas)

Feed stocks and gas stocks on the possibility of an all-out war between Russia and Ukraine…

(provided by SK gas)

Prices of grain, feed and natural gas are on the rise again as the prospect of Russia declaring an all-out war on Ukraine has emerged. As a result, stock prices of related companies are also bullish.

According to The Telegraph on April 29 (local time), British Defense Secretary Ben Wellers announced that “Russian President Putin may issue a massive mobilization of the people to make up for military losses, i.e., a general mobilization of the country.” He added, “That time may be the 9th of May, the anniversary of Russia’s victory in World War II.”

As the possibility of war escalating has been raised, the prices of grain and natural gas, which are highly dependent on Russia and Ukraine, are also rising. As of April 29 (local time), on the Chicago Mercantile Exchange (CBOT), corn futures for May delivery rose to $8.18 per bushel (about 25.4 kg). On April 18th, it broke the $8 level for the first time since 2012 and seemed to turn around, but it broke through the $8 level again from the end of April. According to Hanwha Research, Russia and Ukraine accounted for 9% and 12%, respectively, of 21% of world grain exports in 2021, and Russia’s fertilizer production is close to 18%.

On April 29 (local time) on the New York Mercantile Exchange, natural gas futures for June were traded at $7.24 per MMBtu (natural gas calorific unit). Comparing the new low and high in the past year alone, it rose from $2.91 to $7.82 per 1 MMBtu, a 2.68-fold increase. Even the supply chain is shaking. On April 26, it also announced that it would stop supplying gas to Polish and Bulgarian companies that did not accept the ruble payment request. Russia is responsible for 16.6% of world natural gas production. In addition, as Russian natural gas pipelines go through Ukraine to Europe, if an armed conflict occurs, natural gas supply and demand will be further disrupted.

As it is predicted that the performance of domestic related companies will improve due to rising grain and natural gas prices, the atmosphere is stimulating investment sentiment.

As of 2:10 pm on May 2, Daeju Industrial and Daehan Jedang, the owners of grain and feed, rose 29.91% and 29.78%, respectively, to their upper limit. Easy Holdings (10.49%), Sajo Dongawon (10.41%), and Farm Story (6.01%) also recorded an increase of around 10%. As for gas stocks, SK Gas, the No. 1 LPG company in Korea, is trading at 125,000 won, up 5.04% from the previous trading day. In addition, Daesung Energy (1.42%) and Korea Gas Corporation (1.10%) also rose slightly.

Meanwhile, it is unclear whether Russia’s declaration of all-out war will actually be carried out. According to Reuters news on May 1 (local time), the Russian foreign minister said in an interview with Italian media media set, “Will May 9 be a turning point in this war? We will not artificially coordinate military actions to a specific date, including the

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