- Food prices are already touching the sky and are expected to rise further.
- Farmers blame the extreme weather for impacting the yield and the quality of their produce.
Food prices have climbed amid skyrocketing inflation levels. People are now paying significantly more than they paid for groceries last year. However, the situation may aggravate even further as another surge in food prices is on the cards.
Due to extreme weather, farmers across the country have warned that the cost of everyday staples like bread, potatoes and meat may go up as crops are hit by high temperatures and drought conditions.
As per the National Farmers' Union, unprecedented dry conditions are impacting the quality of the produce as well as the yields. Among the worst hit are potato farmers, who claimed their yields are down by up to 40% in some regions in August. Wheat crops are also hit due to the extreme weather, worsening the supply disruption caused by the Russia-Ukraine crisis.
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With reference to this information, investors can take a look at the below food-related stocks selected by Kalkine Media®.
Associated British Foods Plc (LON: ABF)
The British multinational food processing firm has operations in over 50 countries and customers in more than 100. ABF was enjoying a market cap of £13,054.71 million and in the past 12 months, the stock has tanked over 20%, and the earnings per share (EPS) currently stands at 0.61. The stock has a Relative Strength Index (RSI) value of 48.95 as of 12:30 pm GMT+1 on 12 August, according to data from the London Stock Exchange.
Cranswick Plc (LON: CWK)
Cranswick is a leading British food producer listed on the mid-cap focused FTSE 250 index. It supplies staples like bread and meat, as well as snacks to its customers. With a market cap of £1,676.27 million, the stock has tumbled over 11% year-to-date (YTD), while the 52-week return is currently at -20.00%. Its earnings per share are at 1.96. As per data from the London Stock Exchange, the stock had an RSI value of 50.68 as of 12:30 pm GMT+1 on Friday.
Premier Foods Plc (LON: PFD)
Premier Foods is a leading food business which owns popular brands like Cadbury, Mr Kipling, Lyons, etc. The FTSE 250-listed company recently announced the acquisition of Indian and South East Asian meal kits and accompaniments brand The Spice Tailor. In the last one year, the stock has witnessed a jump of 2%, while the YTD return stood at 4.65%. Its RSI value stood at 55.92 as of 12:30 pm GMT+1 on 12 August, according to data from the London Stock Exchange.
Note: The above content constitutes a very preliminary observation or view based on market trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.