White Papers Analytics to Address Agricultural Market | Page 2

INTRODUCTION
There is no single market for agricultural and soft commodities – each commodity has its own unique value chain and combination of production methods,
processing/transformations, and consumption patterns; the combinations of
which any particular commodity can, and in many cases will, vary significantly
by geography.
Prices for these commodities are influenced by weather, input costs (seed, fuel, fertilizer, equipment and labor), changing consumer lifestyles, wealth distribution (both
globally and within individual countries),
currency values, interest rates, regulations
(including impacts of GMO regulations),
subsidization, and emerging technologies
(such as bio-fuels). Where any particular enterprise falls within the value chain from producer to consumer, the influence and impact
of any one or more of these factors will vary.

With the majority of agricultural and soft
commodity wholesale prices at or near
5 year lows, and the outlook projecting
more of the same, almost all market participants are facing significant challenges
in maintaining profitability. From producers
to processors, any company that operates
in the ags and softs market must remain
vigilant and constantly adjust to these rapidly changing market conditions, including uncertainty driven price volatilities,
in order to ensure a profitable operation.

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