Energy costs are on the rise as winter weather freezes out production, but policy constructs are likely to lengthen the dynamic. The dominant political force intends to squeeze down fossil fuel support and this will push energy prices higher. Corn is relatively energy intense (20 percent of costs) to produce compared with soybeans (9 percent of costs), and it could be an additional factor besides the soybean-corn price ratio influencing planting this spring, but only on the margin. USDA’s Economic Research Service looked at the impact of higher energy prices on agriculture and found them to be “modest.” Indeed, the relative cost of energy has been low in recent years and yet the value of corn production minus production c...
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...