Owner of Piraquê loses almost R$ 700 million in a week because of the war in Ukraine; understand

The manufacturer of dry pasta and biscuits M. Dias Branco, owner of brands widespread in Brazil, such as Adria, Piraquê and Vitarella, has suffered sudden drops in the values ​​of its shares in B3 since the beginning of the war between Russia and Ukraine. This is because the company is highly dependent on the price of agricultural commodities, mainly wheat.

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In all, M. Dias Branco has already lost R$ 681 million in market value in just one week. On February 23, the day before the Russian invasion, the company’s shares closed at R$23.75, well below the high of the last 12 months (R$31.57). In the last seven days, however, there was a drop of R$ 8.5%.

The main factor for the retreat is investor fears about the impact of the war on the company’s cost line, as Russia and Ukraine are major grain exporters, accounting for 31%, 29% and 19% of global grain trade. barley, wheat and corn, respectively.

The lockdowns could further harm the soybean market due to the ripple effects of the key role Ukraine and Russia play in the sunflower oil trade (60% and 78% of global production and exports) which could cause demand to shift. for competing edible oils such as palm and soy.

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