Many Soft Commodities Are Back To Their Pre- Ukraine Russia War Levels, Metals Slipping From Highs

Most soft commodities are trading near the pre-war level prices. While cotton is off 26% from its recent highs, Sugar is down 10%, wheat has declined 27%, Soybeans have fallen 11% and palm out is down nearly 40%. On the back of this, FMCG stocks are also in the limelight. Margins are expected to rise due to the fall in soft commodity prices. Especially for products like biscuits, wheat which contributes 40-60% of the total costs. Even edible oil rates have been slashed by companies like Ruchi Soya, and Adani Wilmar between 10-15% across product categories. Metals too are off from their 52-week highs. Rising inflation, rising interest rates by central banks globally, slowdown concerns, and recession fears are the reasons why commodity prices are declining.