The dairy industry has faced several years of bear markets and just when things looked like they were going to turn around in 2020, COVID-19 hit. Reduced foodservice demand, increased retail demand, and government purchases through the Food Box Distribution program have all focused more attention on the Federal Milk Marketing Order (FMMO) pricing system. The impact was a record-large spread between prices for the various milk classes, de-pooling of milk, and milk check deductions through producer price differentials. Though not directly related, the timing is notable that the American Farm Bureau Federation (AFBF) has released a new policy proposal for FMMO reform. AFBF, in fact, convened a working group for updating the FMMO a...
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...
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.