F2F Proxy Greens in Europe have been downplaying the impact on production from reduced use of inputs, arguing that studies showing lower production are flawed. Whether the use of inputs like fertilizer are reduced due to government restrictions on use (F2F) or tempered by record high prices, the impact on output should be the same. The price of fertilizer is up four-fold from 2017 and while the elasticity of demand for this product is relatively small due to the lack of substitutes, it is nonetheless having an adverse impact. Considering high fertilizer costs, farmers in Europe are reportedly looking at their marginal costs and are thinking about reduced plantings. Corn yields in Brazil are predicted to fall based on the tighter supply of...
What You Need to Know Today: U.S. launches naval escort operations in the Strait of Hormuz as Iran attacks UAE oil infrastructure, escalating geopolitical risk and supporting energy and broader commodity markets Biofuel demand entering uncharted territory, with soyoil valuation increasingly di...
The Middle East is said to be undergoing a transformation as economic priorities transcend security concerns. This is evidenced by diversification away from oil and the UAE’s departure from OPEC. Meanwhile, the Palestine issue has been deprioritized, and Iran has emerged as more destabili...
All eyes are shifting to the Senate following the House passage of a farm bill last Thursday. Senate Agriculture Committee Chair John Boozman (R-Arkansas) is targeting the end of May or early June for a bill markup. According to Boozman, the House “going ahead and passing something was re...
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.