This is odd. Olam and Wilmar were winners in previous commodity bull runs. In the 2006-08, Wilmar quadrupled in value. Olam more than doubled. These companies are processors that trade in the stock market like producers.
The poor performance of commodity traders on Singapore Exchange (SGX) has baffled investors. Corn and wheat are at the highest levels since 2012. The Bloomberg Commodity Index is up 24% year-to-date. Western commodity traders such as Glencore, Bunge and Archer-Daniels-Midland are soaring.
But, Olam Group and Wilmar International, two of the SGX-listed commodity traders, are floundering. They are down in a food price spike.
