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The Financial Times reports that growing reliance on key transport chokepoints such as the Panama Canal and the Strait of Malacca raises the risk of food price spikes. The article cites a Chatham House report that identifies 14 critical junctures through which significant grain and soybean trade passes.
A disruption at a single chokepoint could cut export supply of soybeans and wheat, adding a risk premium to global feed and grain prices.
ft.comJun 27, 2017After 206 past bullish logistics events, Soybeans moved a median +0.5% over 5 sessions (56% higher; middle half -1.3% to +2.6%), and +1.4% over 20.
After 283 past bullish logistics events, Wheat (SRW) moved a median -0.2% over 5 sessions (46% higher; middle half -1.4% to +1.3%), and -0.1% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
