World Perspectives
livestock

Cattle on Feed Report Supportive of Cattle Prices

USDA released its Cattle on Feed report today, which was mostly in line with expectations. The inventory of cattle in feedlots with a capacity of 1,000 head or more was 11.1 million head, in line with expectations. Placements and marketings were slightly lower than the average pre-report forecasts.    

Average daily marketings were 86,364 head in July based on 22 work days comapred to 86,522 in July 2020 based on 23 slaughter days. Marketings as a percent of cattle on feed inventory in July were 17.2 percent, compared to 17.6 in July 2020. 

Placements in July were 1.74 million head. The drop in placements compared to last year, when the market was coming out of COVID, is large, but the 2015-2019 five-year average i...

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livestock

Livestock Industry Margins

Beef packer margins reversed sharply to -$17/head from $120/head the prior week, as rising fed cattle prices more than offset a modest decline in the Choice cutout. Fed cattle prices increased $12.92/cwt from the prior week while the cutout slipped $3.24/cwt, compressing gross margins and pushi...

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From WPI Consulting

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.

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