Futures Hit by Global UncertaintyBy Alejandro Salas | Thu, 03/05/2020 - 17:46
The world is still struggling with the effects of the COVID-19 outbreak and the primary sector has been hit by considerable uncertainty. In more local news, the norm on new labels for food and non-alcoholic beverages has been put on hold, while SADER’s minister calls for greater sustainability in the agriculture sector.
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According to Kantar México, beer brewer Corona is for the sixth year in a row the most powerful company in the country. In its Top 30, Kantar México also considers Lala in 28th place. In Latin America, the ranking showcases Corona as the third most valuable company in the region, followed by Cerveza Modelo in 11th place, Bimbo in 20th, Tecate in 31st and Sol in 46th.
According to the Minister of Agriculture and Rural Development Víctor Villalobos, the agriculture sector has great potential but it also has the responsibility to become more sustainable. “We need to start changing the way we see the primary sector. Resources are depleting,” he said in an interview with El Economista.
Changes in Regulation
A judge has provisionally suspended the creation and enforcement of NOM-051 that forces companies to label food and non-alcoholic beverages according to their potential health risk. “We think the approved norm did not provide consumers with the right information to make the best decisions regarding their nutrition,” said CCE.
In Chile, however, the implementation of similar regulations, coupled with advertising restrictions for unhealthy foodstuffs and a ban in junk food in schools, has led to a reduction in the consumption of sugar-sweetened drinks of 25 percent in just 18 months, according to PLOS Medicine.
Ups and Downs
Futures of several products showcase the uncertainty caused by the COVID-19 outbreak, deficiencies in supply chain and the speculation of certain distributors. While there are winners like coffee and rubber, there are also big losers like oats.
According to Ángel García-Lascurain, Country President of the Mexican Institute of Finance Executives, the automotive, agriculture and tourism sectors could be the most impacted by the COVID-19 outbreak. “This will be the result of limited growth in the US and China,” he said.
Among the winners is soy, which futures rose for three consecutive days till Wednesday, reaching record highs for the past six weeks due to expectations for greater demand. On the losers’ side are corn and wheat. The former plummeted to historic lows on the last Thursday of February, while the latter reached its worst level in two and a half months.