Cheaper corn is good for tortilla sales

See how declining #corn and #wheat prices are good for the share price of Mexican based food company, Gruma.

They are negatively correlated.

Cheaper ‘inputs’ equates to lower ‘cost of goods sold’ for Gruma.

#Gruma makes corn flour, both wheat and corn tortillas, snacks along with flatbreads and pitas.

Mission is one of their most known brands.

Today, Corn and Wheat are ‘troughing’ while Gruma’s stock price is approaching overbought levels.

Readers may also be interested to note the correlation which the #inflation rate has with price of corn and wheat.

August 8, 2024

by Rob Zdravevski

rob@karriasset.com.au