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“Covid-19 has forced consumers to shift from just-in-time inventory management to a more conservative approach which was labeled just-in-case,” Bank of America analysts said, as quoted by Bloomberg. “The result is that consumers are holding more inventory as a precaution against future supply disruptions.”
Similar steps were undertaken by Morocco and Pakistan. However, analysts noted that some of the increased imports stem from the nations’ desire to purchase commodities in advance to avoid paying more for them later. Extensive purchases combined with other factors, including strong demand from China, which has been dealing with flooding and inclement weather, have already pushed prices up. The Bloomberg Agriculture Subindex, which measures key farm goods futures contracts, jumped around 20 percent since June’s lows.
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