World Perspectives

Costly Morning Joe

Brazil is the largest producer of coffee in the world, representing 40 percent of global production, and recent freeze damage is expected to drive global coffee ending stocks down to their lowest level since 2012. Over three-days last week, the September ICE coffee futures price rose from $156.40/37,500 pounds to $193.55, a nearly 24 percent increase. Because of the large loss of young trees, the reduced stocks are expected to last for a few years and has pushed deferred coffee contracts to even higher prices.  Weather-related impacts have generally made coffee prices more volatile. Although not a necessary food item, a significant number of coffee drinkers will be paying more for their morning Joe in the coming years. 

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From WPI Consulting

Forecasting developments in production agriculture

On behalf of a private U.S. agricultural technology provider, WPI’s team generated an econometric model to forecast the movement of concentrated corn production north and west from the traditional U.S. Corn Belt. WPI’s model has subsequently provided quantitative support to a multi-million-dollar investment into short-season corn variety development. WPI’s methodology included a series of interviews with regional grain elevators and seed consultants. Emphasizing outreach and communication with stakeholders who possess intimate sectoral knowledge – on-the-ground insights – is a regular component of WPI’s methodologies, made possible by WPI’s ever-growing network of industry contacts.

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