World Perspectives

Cost of Production Estimates Show Little Relief, Worry on Margins

Yesterday, WPI discussed the various measures of inflation, and the drop in energy costs which held down the CPI, but not the alternative measures of inflationary pressures which exclude energy. Some of that same dynamic can be seen in the USDA’s most recent cost of production report, forecasting for both 2023 and 2024. Lower natural gas and nitrogen fertilizer prices are reflected in the forecast, but other categories like labor, machinery and equipment, taxes, and insurance are all forecast to increase. With corn prices expected to moderate, this could pressure farmers’ margins this year and into next. Since 2020, in percentage terms, fertilizer and interest rates have seen the greatest increase in costs – both up 78 pe...

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Recent Market Volatility Increases Futures Mispricing

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From WPI Consulting

Infrastructure investment due diligence

On behalf of a Canadian oilseed processer WPI's team provided market analysis, econometric modeling and financial due diligence in support of a $24 million-dollar investment in a Ukrainian crush plant. Consistent with WPI's findings, local production to supply the plant and the facility's output have expanded exponentially since the investment. WPI has conducted parallel work on behalf of U.S., South American and European clients, both private and public, in the agri-food space.

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