Although coffee futures are edging back up (Arabica hit a peak a month ago), prices are descending in longer dated contracts as Brazil is expected to supply a good crop. The normally higher priced arabica has been getting chased by robusta prices as buyers seek substitution to save costs. World production has been down two years in a row, dropping last year nearly 6 percent from the 2021 peak, and down around 2.2 percent this year though better than in 2022. The CAGR for coffee demand has been 5.7 percent and this imbalance in supply and demand is reflected in prices. The peak for coffee prices was in 2011 and they hit their second highest level in 2022. Current pricing is the second highest since 2014. Assuming weather cooperates, g...
Regional News Dry weather across the UK and Europe is becoming increasingly concerning for the 2027 crops as planting intentions are lowered amid dry soil conditions. Delayed sowing or establishment under adverse conditions could leave crops more vulnerable to frost/freeze events and dise...
From WPI Consulting
Communicating importance of value-added products
Facing increasing pressure to quantify the value of export promotion efforts to investors, a U.S. industry organization retained WPI to develop a quantitative model that better communicated the importance of exports. The resulting model concluded that value-added meat exports contributed $0.45 cents per bushel to the price of corn, increasing support for that sector’s financial support of WPI’s client. In addition to serving the red meat industry with this type of analysis, WPI has generated similar deliverables for the U.S. soybean and poultry/egg industries.