World Perspectives
livestock

Arbitraging Energy

Food prices have increased but not as much as energy costs. The latest CPI data shows food at home increased year-on-year in April by 10.8 percent, and by even more for animal proteins. However, the cost of gasoline has jumped from $2.948/gallon in April 2021 to $4.213/gallon last month. U.S. energy costs are a third less than Japan’s, and only half as much as Germany’s. Energy is about 14 percent of U.S. agricultural production costs and likely a larger share in most countries, though it is substantially less a cost burden in Russia. Because shipping water is expensive and even more so when bunker oil prices are high, countries that produce food and extract its water using lower energy costs are more competitive in global mark...

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feed-grains soy-oilseeds wheat

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May 26 Corn closed at $4.5375/bushel, down $0.0675 from yesterday's close.  May 26 Wheat closed at $6.0325/bushel, down $0.135 from yesterday's close.  May 26 Soybeans closed at $11.9625/bushel, down $0.045 from yesterday's close.  May 26 Soymeal closed at $313.5/short ton, down...

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Market Commentary: Crude Oil Rally and Crash Drives Whipsaw CBOT Action

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Process Standards as NTBs; Nazi Food

Process Standards as NTBs California’s Prop 12, which a House Agriculture Committee-passed farm bill is supposed to override, restricts the sale of pork and eggs in the state if not produced according to its restrictive standards. Such processing restrictions have long been used as nontar...

feed-grains soy-oilseeds wheat

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Process Standards as NTBs; Nazi Food

Process Standards as NTBs California’s Prop 12, which a House Agriculture Committee-passed farm bill is supposed to override, restricts the sale of pork and eggs in the state if not produced according to its restrictive standards. Such processing restrictions have long been used as nontar...

energy

Iran War Hits Fertilizer Supply and Disrupts SMP Trade

Today the war in Iran has hit its 10th day. Iranian forces have sustained their retaliatory strikes on US military assets and other key infrastructure in Kuwait, Qatar, Saudi Arabia, and the UAE. The latest Iranian attacks on Bahrain have damaged a water desalination plant. Further, more than a...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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