Fluctuations in Imported Raw Material Prices, Ocean Freight Rates and Exchange Rates

「In the feed industry, the Chicago corn market, the main raw material, rose temporarily in the fourth quarter amid concerns over lower yields in the United States and increased export demand. For the full year, however, it was generally soft as planting and crop growth progressed largely smoothly.」

「In the feed industry, Chicago corn prices declined as higher ending stocks were expected due to prospects for a bumper harvest, reflecting expanded planted acreage in the United States, the main production area, and continued favorable weather for crop growth. In response, our livestock compound feed prices declined from the same period of the previous year.」

「Corn prices, the main raw material, were below the same period of the previous year, reflecting favorable weather and higher yields in the United States, the main production area. Our group reduced livestock feed prices in April and October, but yen-denominated raw material prices continued to trend high due to elevated ocean freight rates and other factors.」

「In the feed industry, corn prices, the main raw material, were below the same period of the previous year in the United States, the main production area, due to prospects for a bumper harvest resulting from favorable weather, as well as increased planted acreage. Prices of other raw materials also generally remained below the same period of the previous year, reflecting higher inventory levels in the main production areas.」

「In the feed industry, Chicago corn futures prices, the main raw material, continued to trend downward, supported by prospects for stable harvests. Our group reduced livestock compound feed prices for 3 consecutive quarters, in April, July and October. However, yen-denominated raw material prices continued to trend high due to elevated ocean freight rates and the yen's depreciation against foreign currencies, and prices were raised in January.」

「In the feed industry, political instability, including the Russia-Ukraine situation, continues. However, Chicago futures prices for corn, the principal raw material, have continued to decline, supported by expectations of stable harvest volumes, and the Group has lowered livestock compound feed prices for four consecutive quarters since January last year, in April, July and October. Nevertheless, raw material prices denominated in yen remain uncertain because of higher ocean freight rates and the depreciation of the yen. The business environment also remains unpredictable owing in part to higher contributions to the Feed Price Stabilization Fund.」

「The Group lowered livestock compound feed prices in January of this year, followed by further price reductions in April and July. However, the business environment remains challenging, owing to higher contributions to the Feed Price Stabilization Fund and the depreciation of the yen, among other factors.」

「In the feed industry, corn prices temporarily declined on expectations of increased planted acreage in the US, the main producing country. However, prices subsequently fluctuated sharply amid speculative buying, expectations of a bumper crop in South America and concerns about dry conditions in the US.」

「In the feed industry, corn prices, the principal raw material, had been rising as ethanol demand recovered amid higher crude oil prices. However, due to global concerns about grain supplies arising from the Russia-Ukraine situation, prices remained in a historically high range throughout the year. In addition, the depreciation of the yen caused domestic prices for many raw materials, including the principal raw materials, to rise substantially above the level of the same period of the previous year.」

「However, the depreciation of the yen has caused the prices of many raw materials, including the principal raw materials, to rise substantially above the level of the same period of the previous year.」

「In the feed industry, corn prices temporarily declined on expectations that grain exports from Ukraine would resume. However, prices subsequently rose as concerns about hot and dry conditions in the US, the main producing country, and supply concerns caused by drought in the southern US increased domestic demand. In addition, the depreciation of the yen pushed corn prices substantially above the level of the same period of the previous year.」

「However, among the business and other risks, the risk associated with fluctuations in raw material prices is already affecting earnings through the sharp rise in raw material prices.」

「Corn prices, the principal raw material, have risen as a result of strong demand, including increased ethanol demand accompanying the rise in crude oil prices. In addition, owing to concerns about the supply of grain and other commodities arising from the Russia-Ukraine situation, many raw material prices, including wheat, have remained at historically high levels.」

「In the feed industry, corn prices, the principal raw material, were affected by strong grain demand, including increased ethanol demand accompanying the rise in crude oil prices. They fluctuated between the low and high $5 range and remained above the level of the same period of the previous year.」

「In the feed industry, corn prices, the principal raw material, surged in early spring because of weather concerns and other factors. Prices subsequently retreated on expectations of a bumper crop in the US, the main producing country, but remained above the level of the same period of the previous year.」

「In the feed industry, corn and soybean meal prices surged through the first half of May, affected by weather concerns in Brazil, a major producing country in South America. Prices then tended to decline slightly as planting progressed smoothly in the US, the main producing country, but remained higher than in the same period of the previous year.」

「In the feed industry, prices of both corn and soybean meal, the principal raw materials, rose substantially from the previous period owing to strong export demand to China and concerns about crop conditions caused by unfavorable weather in Brazil and Argentina, the main producing countries in South America.」

「Corn prices, the main raw material, fell to the low $3 range during the first half of the period as the US Midwest, the main producing region, benefited from favorable weather. However, prices rebounded after a major storm in August caused extensive damage to growing corn. Prices have continued to rise amid concerns about crop conditions and steady export demand.」

「In the feed industry, corn prices fell to the low $3 range because of the impact of the global spread of COVID-19 and lower ethanol demand resulting from the decline in crude oil prices. Prices subsequently rose slightly but remained below the level of the same period of the previous year.」

「Corn prices rose after planting was delayed by prolonged rainfall in the US Midwest, the main producing region. However, prices moved erratically throughout the period owing to the US Department of Agriculture's subsequent upward revision of its yield forecast and the impact of US-China trade issues. Soybean meal prices also tended to rise from December, partly due to the announcement of a trade agreement between the US and China.」

「Corn prices surged and remained high after planting was delayed by prolonged rainfall in the US Midwest, the main producing region. However, prices subsequently fell after the US Department of Agriculture raised its yield forecast. Soybean meal prices also declined slightly.」

「In the feed industry, corn prices surged because persistent rainfall in the US Midwest, the main producing region, significantly delayed planting. Soybean meal prices also moved similarly because of the impact of planting delays caused by rainfall.」

「In the feed industry, corn prices rose as yields were revised downward because continued rainfall delayed planting in the main producing region of the US Midwest, while demand remained strong. Soybean meal prices declined, partly because exports of US soybeans decreased as a result of trade friction between the US and China.」

「Because most of the major raw materials, including corn, used to manufacture and sell compound feed are procured from overseas, changes in yields caused by planted acreage and weather conditions in producing regions such as the United States, the activities of speculative investors in futures markets, and fluctuations in ocean freight rates could cause substantial changes in raw material costs. Sharp fluctuations in foreign exchange rates are also reflected in procurement costs and have a material impact on operating results. Accordingly, we seek to minimize the impact by entering into foreign exchange forward contracts, although it may not be possible to procure materials at the planned raw material cost.」

「Because most of the major raw materials, including corn, used to manufacture and sell compound feed are procured from overseas, changes in yields caused by planted acreage and weather conditions in producing regions such as the United States, the activities of speculative investors in futures markets, and fluctuations in ocean freight rates could cause substantial changes in raw material costs. Sharp fluctuations in foreign exchange rates are also reflected in procurement costs and have a material impact on operating results. Accordingly, we seek to minimize the impact by entering into foreign exchange forward contracts, although it may not be possible to procure materials at the planned raw material cost.」

「Because most of the major raw materials, including corn, used to manufacture and sell compound feed are procured from overseas, changes in yields caused by planted acreage and weather conditions in producing regions such as the United States, the activities of speculative investors in futures markets, and fluctuations in ocean freight rates could cause substantial changes in raw material costs. Sharp fluctuations in foreign exchange rates are also reflected in procurement costs and have a material impact on operating results. Accordingly, we seek to minimize the impact by entering into foreign exchange forward contracts, although it may not be possible to procure materials at the planned raw material cost.」

「Because most of the major raw materials, including corn, used to manufacture and sell compound feed are procured from overseas, changes in yields caused by planted acreage and weather conditions in producing regions such as the United States, the activities of speculative investors in futures markets, and fluctuations in ocean freight rates could cause substantial changes in raw material costs. Sharp fluctuations in foreign exchange rates are also reflected in procurement costs and have a material impact on operating results. Accordingly, we seek to minimize the impact by entering into foreign exchange forward contracts, although it may not be possible to procure materials at the planned raw material cost.」

「Accordingly, although the cost of raw materials for compound feed fluctuates constantly as a result of these factors, compound feed selling prices are customarily reviewed every three months. To address this, we seek to minimize the impact of sharp fluctuations by entering into forward contracts for grain prices, ocean freight rates and foreign exchange rates. However, sudden and unforeseen market fluctuations could have a significant impact on operating results.」

「Sharp fluctuations in foreign exchange rates are reflected in procurement costs and have a material impact on operating results. Accordingly, we seek to minimize the impact by entering into foreign exchange forward contracts, although it may not be possible to procure materials at the planned raw material cost.」

「Sharp fluctuations in foreign exchange rates are reflected in procurement costs and have a material impact on operating results. Accordingly, we seek to minimize the impact by entering into foreign exchange forward contracts, although it may not be possible to procure materials at the planned raw material cost.」

「Sharp fluctuations in foreign exchange rates are reflected in procurement costs and have a material impact on operating results. Accordingly, we seek to minimize the impact by entering into foreign exchange forward contracts, although it may not be possible to procure materials at the planned raw material cost.」

「Accordingly, although the cost of raw materials for compound feed fluctuates constantly as a result of these factors, compound feed selling prices are customarily reviewed every three months. To address this, we seek to minimize the impact of sharp fluctuations by entering into forward contracts for grain prices, ocean freight rates and foreign exchange rates. However, sudden and unforeseen market fluctuations could have a significant impact on operating results.」