Grain, Freight, and Factory Costs Fall Together for First Time in 15 Weeks

The Food Industry Executive Input Cost Index has recorded a rare occurrence: grain, freight, and factory input costs all moving in the same direction. For the first time in 15 weeks of tracking, these costs have all eased together.

Ocean freight rates declined for a third consecutive week, while grain prices remained stable after experiencing sharp fluctuations. The ISM Prices Paid reading, which serves as a proxy for factory input costs, also decreased for the first time since spring.

This development complicates procurement plans for Q4 that assumed rising costs. Although the index is still in High Pressure territory, the simultaneous decline of all inputs is a new phenomenon.