What the collapse of UAE-based Phoenix Commodities means for food prices
Unilever Nigeria: Hold
Charoen Pokphand Foods: Buy
Marc Rich, the infamous commodity trader, amassed a fortune despite facing extradition charges. Last month, Hin Leong, a Singaporean marine fuel trader, declared bankruptcy with US$4bn of debts. The firm traded grain, coal, metals and other commodities. Phoenix Commodities was using the same invoice to generate leverage from several financial institutions. Bills of lading carry the actual title. The food market is facing export curbs and supply chain dislocation. Thai exporters anticipate more sales, as their main competitors India and Vietnam battle domestic coronavirus outbreaks. India’s production has halted with the country on lockdown.