As Matt Herrington has been covering, Live cattle and feeder cattle futures have been volatile since the day after Thanksgiving – but trending mostly bearish. This has sparked considerable conversation about the structure of the contracts, expanded limits, and liquidity in the market. The supply and demand fundamentals in the cattle market certainly suggested a more bearish outlook as an increased number of cattle were placed in feedlots and on-feed inventories built up. September placements were 106 percent and 1 October feedlot inventories were 101 percent of a year ago. October placements were 104 percent and 1 November inventories were 102 percent of year ago numbers. Given the short cattle supply situation in July,...
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.