U.S. farmers are hurting financially from commodity prices that have been falling for half a dozen years and now exaggerated by the trade war with China. However, the volume of surplus wheat, corn and soybean stocks has had little correlation with the amount of farm labor employed (see graph below). This is in part because of countercyclical price and income policies, and now the Market Facilitation Program payments. However, the same cannot be said for the labor historically engaged in pricing and exporting what the farmers produce. Not just lower prices but lower volumes being shipped has caused intermediaries to pare down their workers in order to reduce losses. Moreover, Chinese state-owned companies like Cofco are capturing more of th...
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.
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...