India's sugar sector continues to suffer from low prices against the cost of production. Little change is expected unless the government of India (GOI) provides an incentive to boost ethanol production and ensures that the mandated blend rate to gasoline is met. Poor Outlook for Sugar Sector Without Ethanol Production Incentive Farmers want a higher price for their sugarcane as their costs to produce the crop have increased. According to those in Andhra Pradesh, the cost of production is currently $70/MT. If the M S Swaninathan panel recommendation regarding the Minimum Support Price (MSP) is implemented, the payments that farmers receive must be 50 percent over and above the cost of production. That would push sugarcane's State Advisory...
What You Need to Know Today: After a period of limited activity, USDA reported a sizeable 613 KMT in soybean export sales, including 330 KMT to China and 283 KMT to unknown destinations, potentially also China. The purchases represent a meaningful pickup in demand and bring China closer to ful...
Inflation is back in the driver’s seat, and agriculture is getting pulled in two directions. A stronger dollar is pressuring grains despite fresh Chinese buying, while renewed Middle East attacks lift crude oil. Higher energy prices can support commodities, but they also raise expenses an...
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.